Citic, SB China Venture invest in Hong Kong’s Digital Domain
HK$200m share subscription provides a boost to the visual effects giant’s virtual reality content development plans
Red-chip Citic, the biggest conglomerate in China, and private equity firm SB China Venture Capital have entered the virtual reality business through their combined HK$200 million strategic investment in Hong Kong-based Digital Domain Holdings.
In a filing with the Hong Kong stock exchange, Digital Domain said Citic and SB China Venture Capital agreed last Friday to subscribe to a total 363.64 million of its shares at 55 Hong Kong cents per share, which represented a 9.84 per cent discount to the closing price of 61 Hong Kong cents on Friday.
The transaction yielded net proceeds of HK$199.85 million, which Digital Domain said it will use for its media entertainment business and general working capital.
“As Digital Domain’s footprint broadens, we are always looking for opportunities to grow our media and entertainment business and further penetrate the virtual reality market,” company chief executive Daniel Seah Ang said in a statement on Monday.
“The introduction of strategic investors into the company not only represents their confidence in Digital Domain’s solid business foundation, sound strategy and robust potential, but also offers Digital Domain additional funds, increasing our capital base for future business development.”
The company owns and operates the world’s largest independent visual effects studio, Digital Domain 3.0, with headquarters in the United States. Canadian subsidiaries Immersive Ventures and IM360 Entertainment are involved in creating original virtual reality content.