UK-based visual effects producer DNEG is planning a possible stake sale after shelving plans for an initial public offering last year, Bloomberg reported, citing people familiar with the matter.
According to the sources, the company is working with JPMorgan Chase on potential funding options and plans to reach out to investors regarding the disposal of shares.
Any deal could value DNEG at GBP 700.00 million, the insiders noted, asking not to be identified as the situation is still private.
However, deliberations are said to be in the early stages and no final decision has been made at this time.
DNEG claims to be one of the world’s leading visual effects and animation studios for feature film and television.
It has over 20 years of industry experience and has been honoured with the Academy Award for Best VFX five times.
The company counts Walt Disney, Amazon.com, ITV, and Sky among its customers and produced visual effects for films such as Sherlock Homes and the Dark Knight.
DNEG, which stands for Double Negative Holdings, began exploring a stock market flotation in July 2019, at a reported value of GBP 300.00 million.
The company announced its intention to list in October last year and said it was likely to be public before the end of the year.
At the time, DNEG said it was seeking proceeds of GBP 267.30 million; however, days later the group postponed such plans due to market uncertainty around the UK’s planned exit from the European Union.
The business noted that it has received strong investor interest and may consider reviving an IPO once conditions improved.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been three deals targeting motion picture and video industries announced worldwide in 2020 to date.
In the largest of these and the only deal with a known value, Cathay Media and Education Group is listed on the Main Board of Hong Kong Stock Exchange HKD 1.43 billion (USD 264.48 million).
The other targets included Daydream Entertainment and Strawbear Entertainment Group.
© Zephus Ltd