The Southern Star Group is expected to net about $26.4m (A$50m) from US-based video, CD, DVD and film print manufacturer Technicolor's acquisition of its duplication subsidiary Duplitek.
Technicolour invested $17.4m (A$33m) in Duplitek nearly two years ago in a deal that gave it the right to expand its result minority interest in future. That's exactly what has now happened.
Southern Star plans to use the funds to get rid of it's A$16m debt and use the rest to provide working capital to restructure and develop the company's core television production and distribution business. It also plans to review shareholder returns.
Southern Star no longer acts as a theatrical sales agent but has an extensive catalogue of features. Duplitek has long been a cash cow for Southern Star but executive chair Neil Balnaves said that with technology changing fast, the worldwide duplication business was increasingly being dominated by major international groups such as Technicolor.