An Oscar-winning British visual effects company, which has worked on a string of Hollywood blockbusters, has agreed a takeover by a Chinese conglomerate that values it at nearly £150m.

Sky News understands that Framestore, whose film credits include Gravity and Superman Returns, is close to completing a deal with Cultural Investment Holdings Co, a Shanghai-listed group that was previously focused on the automotive sector.

The deal will see CIH acquiring 75% of Framestore's shares, with the British company's management team - led by founder Sir William Sargent - remaining in place and retaining a minority stake after the deal completes.

Insiders said the takeover remained subject to the approval by several Chinese regulators.

If completed, it will be the latest in a series of Chinese takeovers of British companies, a trend which is appearing to gather pace even as other developed economies such as Australia and Germany are demonstrating a more hostile approach to influxes of Chinese capital.


In the housebuilding sector, it emerged this week that Hong Kong-listed Evergrande is in detailed talks to buy Cala, an upmarket British housebuilder, while several consortia with Chinese backers are attempting to buy a majority stake in the gas transmission arm of National Grid.

Sir William told Sky News: "Partnering with CIH positions us both creatively and financially to be the leaders in the world of story-telling across all visual platforms.

"This builds on our strength in Europe and North America, and will accelerate our move into the exciting Chinese market, as well as open up other rapidly expanding markets in Asia."

People close to the auction of Framestore, which kicked off nine months ago, said it had attracted significant interest from parties in the UK, US and Asia.

They added that the appeal of gaining a foothold in a market with a fast-growing entertainment sector and vast emerging middle-class had proved compelling to Sir William and his colleagues.

Among the shareholders who have agreed to sell their stakes in Framestore is Khazanah Nasional, Malaysia's sovereign wealth fund, which acquired 30% of the company in 2014.

Founded by Sir William, its chief executive, 30 years ago, Framestore has developed into one of the most influential post-production houses in the global film industry.

As well as Gravity, which won the company an Academy Award, Framestore has been nominated for Oscars for films including Superman Returns and Guardians of the Galaxy.

In addition to its film work, the company has been involved in creating a new visual sequence for the market-opening ceremony at the London Stock Exchange, and digital signage at Morgan Stanley's Broadway headquarters in New York.

Framestore's growth reflects the success of the UK's wider visual effects sector in recent years, with a string of tax breaks available to stimulate investment.

Clarity, a corporate finance firm, advised Framestore's management on the process.