BANGALORE: US-based animation producer Film Roman Inc. has said its deal to
sell a majority stake to India's largest multimedia production firm, Pentamedia
Graphics Ltd., has run into problems.
In a filing to the US Securities & Exchange Commission on Friday, Film
Roman said it appeared Pentamedia Graphics was unable to close the transaction
on terms agreed by both the firms and approved by Film Roman shareholders.
"Film Roman's board has rejected Pentamedia's alternative proposals to
restructure the transaction," it said. But Film Roman, best known for
producing the animation used in "The Simpsons" and "King of the
Hill", said it had extended the closing date until April 13 and discussions
between the two companies were continuing.
"Under the terms of the existing agreement, Pentamedia would acquire a
fully diluted 60 per cent stake of Film Roman in the form of newly issued common
stock for $15 million in cash," Film Roman said.
Pentamedia officials were not immediately available to comment. Pentamedia
last year said the stake in Film Roman would help it gain in terms of more
animation and special effect projects from the United States.
Shares of Pentamedia on Friday closed 6.24 per cent down at Rs 73.60 on the
Bombay Stock Exchange while the main 30-share index ended 0.29 per cent higher.
Film Roman in October agreed to sell a majority stake of the company to
Pentamedia.
Madras-based Pentamedia, which is among global leaders in the industry, has
been on an acquisition spree to strengthen its movie production and distribution
networks and boost content.
(C) Reuters Limited 2001.