Integrated media services Prime Focus today said it will sell its 30 per cent stake in Digital Domain-Reliance to its joint venture (JV) partner and will form a fresh JV to carry on virtual reality and advertising businesses in India.
"The board of directors of the company... Considered and approved divestment of 30 per cent stake in Digital Domain-Reliance, LLC (DD-Reliance), to the existing holder of the remaining 70 per cent stake in DD-Reliance, which is ultimately wholly-owned by Digital Domain Holdings (DDHL)," Prime Focus said in a BSE filing.
DDHL is headquartered in Hong Kong, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong.
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The board also approved entering into a proposed 50:50 joint venture (JV) with DDHL to carry on virtual reality and advertising businesses in India on terms as may be agreed between the parties.
It further said: "The consideration for the 30 per cent stake sale (through an international wholly-owned subsidiary of Prime Focus) is USD 30 million. As part of the possible JV transaction worth USD 25 million, Prime Focus Group will, inter alia, infuse USD 5 million into the new JV."
The proceeds from the sale are expected to be partly used for expansion of its advertising business, catalyze the growth of Virtual Reality in India and also pare debt, the company added.
