One of the leading Korean visual effects firms – Dexter has signed a contract with Dalian Wanda Group – the giant in real estate dealings to now also venture into entertainment. The group is to receive $10 million investment and Wanda’s intention is to strengthen partnership for Chinese-Korean co-productions according to Variety.
The two companies concluded the deal on 1 April and the Chinese company will acquire a portion of Dexter’s newly issued redeemable convertible preference shares, where the preference shares to be converted into ordinary equity will give Wanda a holding of 13.3 per cent of the company and be the second largest stake holder.
“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.
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.
Dexter is fairly new and was established in 2011. It opened an office in Beijing back in 2013 and since has been behind the visual effects for movies like Mr. Go and several other Chinese films which include Tsui Hark’s The Taking of Tiger Mountain and Cheang Pou-soi’s The Monkey King 3D.