Prime Focus Offloads 30% Stake in Digital Domain-Reliance
Mumbai: Prime Focus is offloading its 30% stake in Digital Domain-Reliance to its joint venture (JV) partner. DD-Reliance is ultimately wholly-owned by Hong Kong-headquartered Digital Domain Holdings Limited (DDHL).
Prime Focus said it will set up a new JV with DDHL to carry on virtual reality and advertising businesses in India.
“The parties have signed a MoU regarding the proposed formation of a 50:50 JV with DDHL to carry on virtual reality and advertising businesses in India. The total consideration payable to the Prime Focus Group for the 30% stake sale and possible formation of JV is $55 million worth of shares in the Hong Konglisted DDHL based on an issue price of HK$0.596 per share,” the company said.
The above transactions are subject to, inter-alia, due diligence and customary regulatory and other stakeholder approvals.
The proceeds from the sale, as and when they are monetised, will be partly used for expansion of its advertising business, to catalyse the growth of virtual reality in India and also to pare down debt.