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Pentamedia to buy Improvision Corp

Our Bureau

CHENNAI, Feb. 21

THE board of directors of Pentamedia Graphics have approved the acquisition of 100 per cent equity stake in the US-based Improvision Corporation by means of a stock-swap deal.

The terms of the agreement dictate that PentaMedia would issue 3.3 million global depository receipts (GDRs) at the rate of $6 per underlying equity share for a total consideration of $19.8 million.

According to a statement released by Pentamedia, Improvision Corporation, incorporated in 1997, is a film production company that has completed production of the animated feature film, Sinbad-Beyond the Veil of Mists, which was released in theatres in th e US in January 2000.

The company has also acquired the rights to produce another animated film, The sequel-Sinbad, and two live, action films, Access Denied and Sherlock and Jack.

It is also seeking to acquire the rights to more films.

The release stated that the objective of the acquisition entitled Pentamedia to own the contents, digital assets and other tangible and intangibles of Improvision.

And this acquisition entitled Pentamedia to further strengthen its pre-production and post-production base. The advisors to the acquisition were Bank of America, it said.

Gaming, merchandising and home videos were the potential revenue earners of this acquisition and the theatrical release of Sinbad in Hindi, Tamil and Japanese also offered a major opportunity, the statement said.

The acquisition of the Improvision Corporation follows a host of acquisitions by Pentamedia including those of Animasia International, Singapore, Kingdom Animasia, Philippines, Film Roman of US, and Media Dreams, Mayajaal and KrisSrikkanth.com in India.