DNEG Group to Raise $200M from Abu Dhabi's UASG, Valued at $2B
Prime Focus's subsidiary DNEG Group is set to raise $200 million from Abu Dhabi's United Al Saqer Group, which values DNEG at $2 billion. The investment will support DNEG’s strategy to broaden its services and create job opportunities, with a new visual experience hub in Abu Dhabi.
![DNEG Group to Raise $200M from Abu Dhabi's UASG, Valued at $2B](https://devdiscourse.blob.core.windows.net/aiimagegallery/02_07_2024_15_11_10_5779563.png)
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Entertainment sector entity Prime Focus announced on Tuesday that its subsidiary DNEG Group will secure funding of up to USD 200 million from Abu Dhabi's United Al Saqer Group (UASG).
This investment values the London-headquartered DNEG, a leader in visual entertainment technology and services, at USD 2 billion. The fundraising process is expected to be completed over the next two years.
The announcement had a significant market impact, with Prime Focus shares tanking 8.84 per cent to close at Rs 132.95 a piece on the BSE, contrasting a marginal 0.04 per cent correction on the benchmark.
In FY24, DNEG reported a turnover of Rs 3,524 crore, which constituted 82.81 per cent of Prime Focus's consolidated turnover, as per a regulatory filing.
The substantial investment from UASG is set to accelerate DNEG's strategic direction towards innovation and diversification, evolving from a pure visual effects services provider to a sector-agnostic content production and AI technology partner.
The strategic investment will also see DNEG establishing a new visual experience hub in Abu Dhabi, leading to significant job creation in the region.
Additionally, DNEG will fully operationalize its technology division, Brahma, democratizing photo-real content creation across various applications.
Namit Malhotra, DNEG Group's chairman and chief executive, will remain in his current role. Joining the board will be Nabil Kobeissi and Edouard Zard from UASG, and Prabhu Narasimhan from NaMa Capital.
Prime Focus's regulatory filings reveal that two separate agreements have been signed for the fundraising totalling USD 200 million. Of this, USD 100 million will be received by July 7, with the balance subject to terms and conditions to be fulfilled over the next two years.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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