Pentamedia says Film Roman deal not yet off

CHENNAI: India's leading animation firm, Pentamedia Graphics Ltd., is set to revise its offer for acquiring a majority stake in US-based animation producer Film Roman Inc, a top firm official said on Monday.

Pentamedia's chief operating officer K Srinivasan told Reuters, the firm's board had set up a committee to draft a fresh proposal after reviewing the deal, struck last October, to acquire 60 per cent stake in Film Roman for $15 million.

A fortnight ago, Film Roman in a filing to the US Securities & Exchange Commission, said it appeared Pentamedia Graphics was unable to close the transaction on terms agreed by the companies. It also had set an April 13 deadline for Pentamedia to finalize the transaction.

"The board decided that we will review all proposed acquisitions in the light of changes in valuations and prevailing market conditions and our plans to buy a stake in Film Roman are not yet off. We will submit a revised proposal, "Srinivasan said. He said firm chairman V Chandrasekaran was now in the United States for talks with Film Roman, among others.

"There are four to five other firms we had identified for acquisition and all these valuations are being reviewed." Srinivasan did not elaborate on whether Pentamedia had received any extension to the April 13 deadline set by Film Roman for cementing a deal.

Pentamedia shares on Monday surged 15.9 per cent to Rs 61.50 on a volume of nearly 1.5 million shares; the benchmark Bombay index rose 2.13 per cent. On Friday, Pentamedia posted a net profit of Rs 1.54 billion rupees ($32.75 million) for the year to March, a 55 per cent rise from the figure for the previous year adjusted for extraordinary income.

(C) Reuters Limited 2001.