AID Partners Capital Limited, a Hong Kong based private equity firm focused on buyout opportunities and expansion capital primarily in media and entertainment sector has invested $10 million in Prime Focus World, a wholly owned subsidiary of Prime Focus Limited. AID Partners has invested this sum through optionally convertible preference shares of PFW, which are convertible into 4% equity, this valuing the company at $250 million.
Prime Focus World is a global provider of value-added creative and technical services for 2D to 3D content conversion, visual effects (“VFX”) and animation services. Prime Focus World has worked on popular 3D motion films including The Chronicles of Narnia: Voyage of the Dawn Treader (by Fox), Star Wars: Episode One - The Phantom Menace (by Lucasfilm), Shrek (by DreamWorks Animation), Transformers 3 (by Paramount), Harry Potter and the Deathly Hallows Part 2 (by Warner Brothers), Wrath of the Titans (by Warner Brothers), The Smurfs (by Columbia) and Men in Black 3 (by Sony).
Earlier in November 2012, Standard Chartered PE invested $70 million in Prime Focus Limited- $35 million equity for a 19.71% stake and $35 million through NCDs. In December 2012, Prime Focus successfully redeemed FCCBs worth $79 million. Prime Focus Limited employs over 4,500 professionals and provides end-to-end creative and technical services including visual effects, stereo 3D conversion, video/audio post-production, Digital Intermediate, equipment rental, digital content management and distribution, versioning and adaptation to the Film, Broadcast, Advertising and Media industries.
Said Namit Malhotra, Chairman &CEO, Prime Focus Ltd: “From the initial investment that we made in PFW of $ 43 million in 2008, currently the business is valued more than 5 times. This is indeed great news for our shareholders as we fuel our next wave of growth."
AID Partners is the only independent investor to have acquired this minority stake in Prime Focus World N.V. Coupled with its recent acquisition of a 100% stake in HMV Asia and its investment in Legendary Pictures, this partnership further underscores AID Partners’ commitment to the growth of the entertainment industry in Asia.
In a related development, Prime Focus has announced a joint venture with AID Capital Partners Group and local partner Zhejiang Jingqi Wenhua Chuanbo Company Limited to offer visual effects and 3D conversion services to the movie industry in the Greater China area.