Wanda owner Wang Jianlin aims to expand its cinema arm worldwide. (Photo : Reuters)
Chinese entertainment company Dalian Wanda Group invested $10 million in Dexter, one of Korea's prominent visual effects firms.
The two companies have agreed that Wanda will acquire a portion of Dexter's latest redeemable convertible preference shares. These shares are to be converted into ordinary equity.
Wanda now holds 13.3 percent of shares and is the second largest stakeholder of the firm. The entertainment group holds a net asset value worth $86 billion.
Dexter reported that the deal is part of Wanda's conversion into a four-business-line firm that now caters to entertainment and cultural tourism.
The deal between both parties was concluded on April 1.
The deal is Wanda's plan to strengthen Chinese-Korean co-production partnership, Dexter stated.
"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 Dexter's spokesperson.
The Korean firm was established in 2011 and has worked for several Chinese-Korean co-productions, including "Mr. Go" of Kim Yong-hwa and Chinese films like "The Taking of Tiger Mountain," "Young Detective Dee: Rise of the Sea Dragon" and "The Monkey King 3D."
In 2013, Dexter opened its first office in Beijing and has provided services to seven Chinese films in 2014.
