Prime Focus announced that its UK-based subsidiary DNEG and Sports Ventures Acquisition Corp. mutually agreed to terminate their previously announced business combination agreement, effective immediately.
The companies decided to break off the business combination agreement as a result of current unfavorable special purpose acquisition company (SPAC) market conditions and other factors.
Alan Kestenbaum, chief executive officer and chairman of the board of Sports Ventures commented, “Due to current SPAC and equity market conditions, it was mutually determined that the best option for all parties at this time is to terminate the transaction. Namit and his team are leaders in the market, producing stunning and award-winning work that swept the awards this year. DNEG has a bright future and we wish everyone there much success.”
Namit Malhotra, chairman and CEO of DNEG said, “Due to the headwinds in the SPAC marketplace and general market volatility, we have decided to terminate our SPAC process with Sports Ventures. Alan and the team at Sports Ventures have been great partners in this process, and we wish them well as they move forward. We feel incredibly optimistic about DNEG’s future and the company continues to demonstrate impressive financial results, with our highest-ever revenue growth announced earlier this week. Our strong pipeline reflects the significant demand for our industry-leading visual effects and animation services, as evidenced by our recently announced multi-year deal extension and VFX services renewal agreement with Netflix through 2025.”
Sports Ventures will consider other acquisition opportunities, subject to market conditions and timing. Sports Ventures Acquisition Corp. is a blank check company organized with the purpose of effecting a merger similar business combination with a major entertainment powerhouse.
DNEG is a leading technology-enabled visual effects (VFX) and animation company for the creation of feature film, television and multiplatform content. It recently announced revenue outperformance in a business update with strong year on year growth and a record pipeline of new business reflecting unprecedented demand for its visual effects (VFX) and animation services, said the company.
Prime Focus offers motion picture post production and visual effects services. The company offers visual effects, digital film lab, telecine, editing, and motion control to high-definition production services. On consolidated basis, the company reported a net loss of Rs 90.05 crore as against a net loss of Rs 23.41 crore in Q4 FY22 over Q4 FY21. Net sales during the quarter jumped 56.7% YoY to Rs 1,086.34 crore.
Shares of Prime Focus were down 3.94% at Rs 65.80 on the BSE.
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