Prime Focus Expands Spanish Animation With 48.45% Stake

Prime Focus Limited expanded its European animation production reach by acquiring a 48.45% stake in Spain-based Ánima Kitchent Canarias, S.L. for ₹13.70 crore in cash, with the transaction completed on June 26, 2026. The investment places the Indian-listed parent’s DNEG network alongside an established Spanish animation business.

What did Prime Focus acquire in Spain?

Prime Focus acquired a 48.45% equity stake in Ánima Kitchent Canarias, S.L. through its indirect subsidiary, Double Negative Films Limited. The cash transaction was completed on June 26, 2026, at a consideration of ₹13.70 crore.

The target is a Spanish animation studio with established children’s brands and 2D and 3D animation production capabilities. Prime Focus said the acquisition is intended to improve access to Spanish animation capabilities and markets. The deal was not a related-party transaction, and the entire consideration was paid in cash.

The transaction creates a partnership structure involving Sociedad Española para la Transformación Tecnológica, or SETT, a Spanish government fund. SETT has committed an overall investment of €24.9 million in Ánima Kitchent under a public-private partnership model.

Why is the Ánima Kitchent stake significant for Prime Focus?

The investment is significant because it adds animation production capacity in Europe to the group’s existing visual-effects, technology and production operations. Ánima Kitchent brings both 2D and 3D animation capabilities, while its established children’s brands provide an existing commercial base in the Spanish market.

Prime Focus is the Indian-listed parent, but DNEG S.a.r.l., its Luxembourg-based material subsidiary, is the group’s principal operating business. DNEG holds the creative, technology and production businesses and is 88.28% owned by Prime Focus. Double Negative Films Limited, which completed the Spanish acquisition, is an indirect subsidiary within this wider group structure.

The acquisition also follows a series of steps that have concentrated technology and content-related businesses under DNEG. Prime Focus completed the divestment of its entire equity holding in Brahma AI India Technologies Private Limited to DNEG on December 10, 2025. That transfer was executed under a share sale and purchase agreement dated October 27, 2025.

How has Prime Focus reorganised its DNEG and AI businesses?

Prime Focus has pursued a restructuring in which DNEG has become the key operating platform for creative, technology and production assets. Shareholders approved the previously announced transfer of Prime Focus Technologies Inc. to DNEG at the company’s recent annual general meeting.

The company has also disclosed plans to acquire a 31.05% stake in DNEG through a share swap and raise ₹390.52 crore in cash for further investment in DNEG, business expansion and general corporate purposes. Separately, Prime Focus approved a share allotment of ₹5,552 crore and announced plans to acquire a stake in DNEG.

Brahma has been another important part of the group’s technology strategy. Prime Focus stated that its subsidiary Brahma acquired Metaphysic, with Brahma’s valuation rising to $1.43 billion. On October 15, 2026, the Prime Focus board also approved an investment by Multiples Private Equity into Brahma AI subsidiaries.

Who has invested in the Prime Focus group?

The group has attracted investments from strategic and financial investors around DNEG and related businesses. United Al Saqer Group of Abu Dhabi invested $200 million in the DNEG Group in 2024 at an enterprise valuation above $2 billion, according to the information provided.

United Al Saqer Group later invested a further $25 million in Brahma. Separately, Novator Capital was proposed as an allottee for a 14.40% stake in Prime Focus through a preferential allotment and share swap announced in mid-2025.

Prime Focus has also seen secondary-market interest through block deals. Singularity Large Value Fund I, II and III, associated with Madhusudan Kela and Yash Kela, acquired 62.5 lakh shares, equivalent to a 2.01% stake, at ₹142.55 per share. The disclosed September 5 block deals involved five investors acquiring a combined 3.3% stake for ₹146.2 crore.

What does the Spanish acquisition mean for investors and operations?

For investors, the Ánima Kitchent transaction is a relatively small cash acquisition at ₹13.70 crore when compared with the group’s larger DNEG, Brahma and capital-raising transactions. Its importance lies in the operational scope of the asset: it gives the group a minority stake in a Spanish animation studio supported by a €24.9 million government-linked commitment.

For the group’s operations, the stake broadens access to European animation production through a business that already works across 2D and 3D formats. The acquisition does not establish control of Ánima Kitchent because Double Negative Films Limited acquired 48.45%, not a majority holding.

The deal also extends Prime Focus’s established activity in post-production, visual effects, animation, digital intermediate and 2D-to-3D conversion. Prime Focus acquired DNEG in 2014, and the subsequent restructuring indicates that the group is increasingly organising these activities around DNEG and its related technology businesses.

Conclusion

Prime Focus’s 48.45% purchase in Ánima Kitchent adds Spanish animation capabilities to a group whose principal operating platform is DNEG. The ₹13.70 crore cash transaction is smaller than the group’s wider financing and restructuring actions, but it links the company to an animation studio supported by a €24.9 million public-private partnership commitment.

Investors will watch the execution of the planned DNEG stake acquisition and ₹390.52 crore fund raise, as well as the approved Multiples Private Equity investment in Brahma AI subsidiaries. The source does not disclose a plan to increase the 48.45% holding in Ánima Kitchent beyond the completed transaction.