Reliance MediaWorks shares surge 15%
Mumbai: Shares of Reliance MediaWorks on Monday surged around 15 percent as the company along with China-based Galloping Horse America are set to part-own some of the businesses of Hollywood film-maker James Cameron's Digital Domain Productions through a USD 30.2 million bid.
After climbing over 15 percent during the day, shares of the Anil Ambani group company finally closed the day 12.85 percent higher at Rs 77.30 on the BSE. At the NSE, the scrip settled at Rs 78.50, up 14.60 percent.
The "winning bid" was submitted with Galloping Horse, a leading firm in China engaged in film and TV financing, production, distribution, advertising and publishing, Reliance MediaWorks said in a statement today.
Digital Domain Media, which has churned out blockbusters such as 'Titanic' and 'Avatar', had filed for bankruptcy protection on September 11.
The sale is subject to execution of an asset purchase agreement and bankruptcy court approval in the US, the hearing for which is scheduled for today.
While RMW, part of Anil Ambani group, will hold 30 percent stake, the majority would remain with Galloping Horse in the Digital Domain joint venture.
In July last year, RMW had partnered with Los Angeles- based Digital Domain Productions for visual effects and 3D Stereo Production services studios in Mumbai and London.
Later in the day, the company announced it has divested 100 percent stake in its Malaysia exhibition circuit to private equity fund Navis as part of efforts to focus on Indian business.
Rally in the RMW stock was in sharp contrast with a weak stock market, where the benchmark index Sensex ended at 18,673.34, down 79.49 points.