Prime Focus Limited has informed the Exchange about Acquisition
PFOCUS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Prime Focus Limited's board approved issuing up to 46.27 crore equity shares at INR 120 per share (total ~INR 5,552 crore) on a preferential basis. Of this, 43.01 crore shares (INR 5,161.5 crore) will be issued via share swap to acquire additional shares in its step-down subsidiary DNEG S.a.r.l., Luxembourg, while 3.25 crore shares (INR 390.5 crore) will be issued for cash to raise funds. Post-transaction, Prime Focus's direct and indirect stake in DNEG will rise to 88.28%. A total of 16 investors are participating, including promoter group entity A2R Holdings (whose stake rises from 48.75% to 53.46%) and financial investor Novator Capital Limited (14.40% post-issue). Novator will receive limited special rights (one board seat and affirmative vote on certain matters) while it holds at least 5% of equity. An EGM is scheduled for July 26, 2025 to seek shareholder approval.
The share-swap acquisition consolidates control over DNEG (a major VFX and animation business with USD 425.7 million turnover) without significant cash outflow, which should be positive for long-term shareholders. However, existing shareholders face meaningful dilution from ~46 crore new shares and the promoter group's stake will cross 53%, giving it firmer control. Special rights granted to Novator Capital add a layer of minority governance influence but are capped at a 5% threshold.