Pentamedia in acquisition spree, to absorb 3 firms

By Our Special Correspondent

CHENNAI, DEC. 26. As the year draws to a close, animation company, Pentamedia Graphics, has announced the acquisition of three city-based closely-held companies involving no cash but only share swap.

The three companies are Media Dreams Ltd., Krish Srikkanth Sports & Entertainment Private Ltd. and the re-named Mayajaal (formerly Hotel Whales Private Ltd).

Media Dreams (share capital: Rs. 72.46 lakhs) is into entertainment business claiming to cater to the needs of all segments of the industry - television, theater and Internet. Science fiction writer in Tamil - popularly known as Sujatha Rangaraja - is among the promoters of the company. It only recently had a new CEO who had come from the SPIC Group. It has drawn up plans to enter into post-production area of distribution as well.

Krish Srikkanth Sports & Entertainment Pvt. Ltd. (share capital: Rs. 50 lakhs) is promoted by former captain of Indian cricket team, Mr. K. Srikkanth, and is well into sports-related entertainment business.

Mayajaal (Share capital: Rs. 92.49 lakhs) is into hospitalisty, leisure and entertainment. Its complex, coming up on the East- Coast Road, is claimed to be one-of-its-kind that hosts a series of variety entertainment like bowling alleys, six multiplex theaters, food courts, game hubs and what not.

In all these three cases, Pentamedia Graphics has sought the advice of SBI Capital Markets Ltd.

SBI Caps has valued Media Dreams at around Rs. 60-65 crores, Mayajall at Rs.70-75 crores and Krish Srikkanth Sports and Entertainment Pvt. Ltd. at around Rs.45-50 crores.

Based on this valuation, it has advised a share swap ratio of 100:17 for Media Dreams, 100:15 for Mayajall and 100:18 for Krish Srikkanth Sports & Entertainment Pvt. Ltd.

The board of Pentamedia Graphics, at a meeting held here on the December 22, has already cleared these acquisitions.

Further, the board is also understood to have authorised the management to negotiate for joint venture opportunities in Digital Domain Inc of the U.S., Thornbush of the U.S. and Studio 345 in Canada. The board, however, has sent investment limits in each companies.

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