Visual effects firm DNEG and Sports Ventures Acquisition filed a preliminary proxy statement with the SEC outlining their plans for a business combination. The transaction gives the combined company an enterprise value of $1.7 billion.
DNEG stands to receive up to $398 million if the deal is approved.
With more than 20 years of industry experience, London-based DNEG has been awarded six out of the last ten Academy Awards® for ‘Best Visual Effects,’ most recently Christopher Nolan’s film Tenet. Other credits include Interstellar and Inception, also directed by Nolan.
Current DNEG equity holders will retain approximately 71% ownership in DNEG and will, assuming no redemptions by Sports Ventures’ stockholders, roll 85% of their equity interests into the pro forma company.
Investors have committed to a $168 million PIPE, which is anchored by affiliates of Sports Ventures, Novator Capital Limited, affiliates of Fairfax Financial and Arbor Financial. Assuming no redemptions, approximately $230 million in cash currently held in Sports Ventures’ trust account, together with the PIPE investment proceeds (excluding transaction expenses) would be delivered to DNEG. Read more.
