Dexter, one of Korea’s leading visual effects firms, said today that it has signed a contract to receive $10 million investment from Dalian Wanda Group, the giant Chinese property to entertainment group.
According to Dexter, the two companies concluded the deal on April 1, and that it is Wanda’s intention to reinforce a partnership for Chinese-Korean co-productions.
Wanda will acquire a tranche of Dexter’s newly issued redeemable convertible preference shares. Were the preference shares to be converted into ordinary equity Wanda would hold 13.3% of the company and be the second largest stakeholder.
Contacted by Variety, Wanda offered no comment on the news.
The deal is part of Wanda’s current transformation from a pure-play real estate firm into one with four business lines, including entertainment and cultural tourism. Its net asset value is some $86 billion.
Established in 2011, Dexter has provided visual effects for Kim Yong-hwa’s Chinese-Korean co-production “Mr. Go” and several Chinese films including Tsui Hark’s “The Taking of Tiger Mountain,” “Young Detective Dee: Rise of the Sea Dragon,” and Cheang Pou-soi’s “The Monkey King 3D.” The VFX company opened a Beijing office in 2013 and provided services to seven Chinese films last year.
"Demand for VFX expertise is rising in the ever-growing Chinese market. We expect that Wanda’s investment will serve as a catalyst for expanding our activities in China,” said a Dexter spokesperson.