Prime Focus has reported the completion of preferential allotment of shares to its promoter, Monsoon Studio Private and Reliance MediaWorks worth INR1.20 billion each as part of a merger deal.
Prime Focus has further alloted 67.31 million shares to Reliance MediaWorks towards the transfer of its film and media services business. The shares were sold at a price of INR52 per share.
The board has decided to extend the long stop date from 31 December 2014 to 31 March 2015 as certain conditions in the agreement are pending. Therefore the board will seek a fresh approval from the members for the preferential allotment through a fresh EGM. Following this, promoters of Prime Focus and RMW will hold 33.5% and 30.2% stake respectively in the merged entity.
Reliance MediaWorks announced the merger of its global film and media services business with Prime Focus to establish a new entity in July 2014.