Pentamedia finalises the share swap for restructure plans

Venkatachari Jaganna
05 March 2004

Chennai: Computer animation major, Pentamedia Graphics, has finalised it's restructuring scheme for redistribution of its assets and those of its four wholly-owned subsidiaries. The proposal is now awaiting the Madras High Court's approval.

It may be recalled, early last month, Pentamedia had proposed to transfer two of its divisions, Num TV and animation division, to its wholly-owned subsidiary, the Rs 9.2-crore equity based Mayajaal Entertainment.

The company had also proposed to merge its three subsidiaries - Kris Srikkanth Sports Entertainment (engaged in production of television serials and sports programmes), Media Dreams (film and television programme production company) and Intelivision (which owns the children's channel, Splash) with Mayajaal Entertainment.

According to Pentamedia, the restructuring is proposed to add value to its shareholders, as they will hold shares in two companies — Pentamedia and Mayajaal. Post merger, Mayajaal will be listed on National Stock Exchange, Bombay Stock Exchange and Madras Stock Exchange.

Broadly speaking, the restructure scheme consists mainly of issue of equity by Pentamedia and Mayajaal in exchange for assets and debts. Pentamedia has also proposed to reduce / reorganise its Rs 244.75 crore equity base.

The restructure scheme