On Thursday, the promoter group of Prime Focus Ltd said they have entered into an agreement with Credit Suisse to acquire a 33.12% stake in the company at a price of ₹44.15 per share, aggregating to ₹463 crore
Debt-ridden Reliance Capital Ltd (RCap) has alleged that Credit Suisse’s attempt to sell a 33.12% stake in Prime Focus Ltd (PFL) to PFL promoters was in contravention of the terms of an agreement the asset manager had signed with Reliance Anil Dhirubhai Ambani Group.
In a statement issued on Monday, the Anil Ambani-led firm opposed the sale of PFL shares, which were pledged with Credit Suisse by group company Reliance Mediaworks Financial Services Pvt. Ltd. “The proposed sale of 33.12% equity shares of PFL by Credit Suisse (CS) to PFL’s promoter group at ₹44.15 per share is a blatant abuse of the purported rights by CS under certain lending agreements with RCap group," it said.
“The sale is being attempted privately and clandestinely between two foreign entities, without any open, fair and transparent process being conducted to realize the true value of the shares and disregarding basic norms of conflict of interest. The sale price is at a substantial, altogether unwarranted discount to the intrinsic value of PFL’s shares," it said.
RCap also alleged that the proposed transaction violates several laws, rules and regulations, including inter alia Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, Foreign Exchange Management Act, 1999, and existing Reserve Bank of India guidelines.
RCap will seek all appropriate judicial and regulatory intervention to protect the interests of lenders and shareholders of PFL and RCap, the company added.
On Thursday, PFL’s promoter said they had entered into an agreement with Credit Suisse to acquire a 33.12% stake in the company, aggregating to ₹463 crore. The transaction will trigger an open offer by the promoters to acquire another 26% stake from public shareholders at the same price.
PFL is an integrated media services firm offering end-to-end creative services, technology products and services, production services and post-production services to the media and entertainment industry.