BackMacquarie Capital to invest `313 crore in Prime Focus World
PFW will use the money for expansion, near-term strategic acquisitions and deleveraging debt in Prime Focus Ltd
Premium(Priyanka Parashar/Mint)
Mumbai:Macquarie Capital is investing ₹ 313 crore in animation and visual effects service provider Prime Focus World NV (PFW), a division of Prime Focus Ltd (PFL), for a 17.7% stake.
The funding will be made in two tranches of ₹ 224 crore and ₹ 89 crore, the firms said in a joint statement on Friday.
PFW will use the money for expansion, “near-term strategic acquisitions and deleveraging debt in the parent company". Macquarie Group estimated PFW’s enterprise value at ₹ 1,770 crore.
“In the past five years, our business has gained tremendously through expansion of our product offerings and entrance into new markets," said Namit Malhotra, chief executive of PFW and founder of Prime Focus Ltd.
“Combined with the backing we have received from our other financial partners, AID Partners Capital and Suntrust, the investments will allow Prime Focus World to continue to expand and diversify our creative and technological offerings around the globe," he said.
PFW offers services such as conversion from 2D to 3D, visual effects and animation. The firm has provided its expertise to Hollywood movies such as The Great Gatsby, Men In Black 3, Avatar and Wrath of the Titans among others.
China-based private equity firm AID Partners Capital Ltd invested $10 million in PFW in March. Standard Chartered Private Equity Ltd invested $70 million in December 2012 in PFW’s listed parent, PFL.
“After having made an initial investment of $43 million in 2008 to build out our global platform, we have transitioned and become a business where today our shareholders are seeing a seven times increase in value, while most companies have found it hard to keep pace with the changing times," Malhotra said. “The investments validate our global ambition to become a world leader while continuing to create greater value for our shareholders."
Prime Focus dropped 1.9% to ₹ 38.75 on BSE on Friday. The benchmark Sensex closed at 18,774.24 points, up 0.29%.
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