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Sunday 23 June 2013

Prime Focus World secures Rs 313 cr from Macquarie Capital

Prime Focus World NV (PFW), the creative services division of Prime Focus Ltd (PFL) has raised Rs 313 cr in private equity investment from Macquarie Capital. To be deployed in two phases the first tranche of Rs 224 cr has already been rceived in the first phase signed and Rs 89 cr in a second transactional phase, both of which are designated for strategic growth. This investment now places an enterprise valuation of Rs 1770 cr on PFW.

The capital raised will be used for the build out of the global creative services platform, near-term strategic acquisitions and deleveraging debt in the parent company, Prime Focus Limited, with the combined emphasis of expanding PFW's position as a global leader providing visual effects, animation, and stereo "3D" conversion services to major studios and filmmakers around the world.

Namit Malhotra, founder and chief executive officer-PFW and founder-PFL, said, “In the past five years, our business has gained tremendously through expansion of our product offerings and entrance into new markets. Combined with the backing we have received from our other financial partners AID Partners Capital and Suntrust, the investments will allow Prime Focus World to continue to expand and diversify our creative and technological offerings around the globe.”

Macquarie Capital, the advisory, capital raising and principal investing arm of Macquarie Group, made the investment to PFW and provided advisory services to its parent company, PFL. In addition to the funding from Macquarie, PFW also secured $10 million from China’s AID Partners in March.  Coupled with a recent investment of $70 million from Standard Chartered Private Equity in PFL, these investments illustrate strong confidence in the business strategy and growth prospects for the overall group.

Namit added, "After having made an initial investment of $43million in 2008 to build out our global platform, we have transitioned and become a business where today our shareholders are seeing a seven times increase in value, while most companies have found it hard to keep pace with the changing times. The investments validate our global ambition to become a world leader while continuing to create greater value for our shareholders.”

PFW has brought its expertise to many wide release Hollywood films, including most recently Baz Lurhmann's The Great Gatsby and Paramount’s World War Z, and upcoming releases such as Sony Pictures’ White House Down. Previously released films that the company contributed to include Men in Black 3, Star Wars: Episode One – The Phantom Menace, Dredd 3D, Total Recall, Tim Burton's Frankenweenie, Harry Potter and the Deathly Hallows: Part 2, Narnia: The Voyage of the Dawn Treader, Resident Evil: Retribution, Green Lantern, Immortals, Wrath of the Titans, Mirror Mirror, Transformers: Dark of the Moon and Avatar.

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