Mumbai: Media services major Prime Focus on Wednesday said it has completed the transaction to combine Reliance MediaWorks' (RMW) global film and media services business with itself.
The transaction was first announced in July 2014. It received the Competition Commission of India's (CCI) approval on 15 December 2014.
RMW and the promoters of Prime Focus, Naresh and Namit Malhotra, have infused fresh equity capital of Rs 120 crore into Prime Focus at Rs 52 per share, through a preferential allotment aggregating Rs 240 crore.
As part of the transaction, the domestic and overseas operations of RMW's film and media services business was combined with PFL through a slump sale. The net consideration was paid in the form of fresh equity shares of PFL valued at Rs 52 per share, the company said in a statement.
The promoters of PFL and RMW had earlier announced the mandatory open offer in Prime Focus to the extent of 26 per cent of the fully diluted share capital of PFL, at Rs 52 per share, in compliance with applicable SEBI rules and regulations. The open offer closed on January 16.
Prime Focus is listed on both BSE and NSE.
"While we received the approval from both the stock exchanges including BSE and NSE around a week ago, the preferential shares were allotted a couple of days ago," a company spokesman told PTI.
The deal with RMW was announced close on the heels of Prime Focus' Hollywood facing creative services subsidiary Prime Focus World merging its VFX business with acclaimed VFX house Double Negative.
The combination of RMW - PFL and Academy Award winning Double Negative creates the world's largest and the most integrated media services group with over 5,500 people present across 20 locations offering visual effects, stereo 3D conversion, animation and cloud-based digital media solutions that transcend the film, advertising and television industries, the release added.
"We have completed the last leg of a protracted but path breaking transaction today," Namit Malhotra, Prime Focus founder, executive chairman said.
"From here on our full focus will be to drive the integration process and unlock synergies for the benefit of our customers, employees and stakeholders worldwide," he added.
