Pentamedia acquires 3 content firms

CHENNAI: Indian entertainment software firm Pentamedia Graphics Ltd. has

acquired three local content firms in an all-stock deal valued at over Rs 1.75

billion ($37.5 million), a company spokeswoman said on Tuesday.

The three firms - Media Dreams Ltd., Mayajaal and Krish Srikkanth Sports and

Entertainment Ltd. - have been acquired through a preferential allotment of over

3.5 million equity shares valued at Rs 500 each.

"We have just informed the stock exchanges that we have allotted

3,519,296 shares towards the acquisition of these three companies and will be

intimating them shortly on other details regarding the allotment," the

spokeswoman told Reuters.

Pentamedia shares were down 4.37 per cent or Rs 13.10 lower and at a new

year's low at Rs 286.6 at 11:32 am (0602 GMT) on the Bombay exchange on Tuesday.

The benchmark 30-share Bombay index was down 1.82 per cent at 3,834.66 points.

The share is now over 87 per cent off from its calendar high of Rs 2,344

touched on February 23 and 2.8 per cent off from its previous year low of Rs 295

on December 22.

Earlier this month, the firm said it planned to acquire a total of nine

overseas and local content companies or their digital assets as part of a

strategic growth plan and said it had set aside a budget of $100 million for the

acquisitions. ($1 = 46.67 rupees).

(C) Reuters Limited 2000.