Prime Focus gets $10 million from Hong Kong-based PE fund
Mumbai: Media company Prime Focus on Wednesday said Hong Kong-based private equity fund AID Partners Capital has invested USD 10 million in its subsidiary Prime Focus World (PFW).
The investment has been made through optionally convertible preference shares of PFW, which are convertible into 4 percent equity, Prime Focus said in a statement, adding that the BSE-listed company's subsidiary gets valued at USD 250 million.
The statement said PFW is the world's largest provider of value-added creative and technical services for 2D and 3D content conversion, visual effects (VFX) and animation services.
"3D and VFX are now key elements of big-budget films. With the increasing budgets of tent-pole movies, there is a tremendous demand for world-class 3D and VFX services," AID principal partner Kelvin Wu was quoted as saying.
Prime Focus World chairman and chief executive Namit Malhotra said the parent company had invested USD 43 million into the subsidiary in 2008.
Meanwhile, in a related announcement, Prime Focus said it will be partnering with AID and local partner Zhejiang Jingqi Wenhua Chuanbo Company to offer visual effects and 3D conversion services to the movie industry in the Greater China area.
In a filing to the BSE, Prime Focus said its board has approved an investment of USD 3 million into this joint venture.
The Prime Focus scrip was trading at Rs 41.65 on the BSE, down 0.12 percent, as against the 0.65 percent fall in the benchmark Sensex during afternoon trade.