Prime Focus dips ~3% as its arm ‘DNEG' terminates business combination agreement

17 Jun 2022 , 11:18 AM

Prime Focus Limited informed that its subsidiary ‘DNEG’ and Sports Ventures Acquisition Corp. has announced that the companies have mutually agreed to terminate their previously announced business combination agreement, effective immediately.

The company has taken this step considering the current unfavourable SPAC market conditions and other factors.

DNEG has recently announced revenue outperformance in a business update with strong yoy growth and a record pipeline of new business reflecting unprecedented demand for its visual effects (VFX) and animation services.

Namit Malhotra, DNEG Chairman, and CEO stated, “Due to the adverse conditions in the SPAC marketplace and general market volatility, we have mutually agreed 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.”

He further added, “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.”

Sports Ventures will seek other acquisition opportunities, subject to market conditions and timing.

At around 11.22 AM, Prime Focus was trading at Rs66.20 down by Rs2.3 or 3.36% from its previous closing of Rs68.50 on the BSE. The scrip opened at Rs65.10 and has touched intraday high and low of Rs66.60 and Rs65.10 respectively.