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Pentamedia mulls stake sale in subsidiaries

India's leading animation and special effects software firm Pentamedia Graphics plans to invite strategic investors to buy stakes in its subsidiaries, an effort to spark growth and increase value.

Pentamedia, based in Madras, will seek shareholder approval for the move at its annual general meeting on July 20.

"The company is planning to bring in strategic investors to the various subsidiaries of the company in order to create better value and growth," a notice to shareholders said.

Pentamedia said it was in the process of identifying strategic investors in which to sell stakes in fully-owned subsidiaries. It did not identify those subsidiaries nor say what sized stakes it may sell.

Among Pentamedia's Indian subsidiaries are content companies Mayajaal Entertainment Ltd, Media Dreams Ltd and Krish Srikkanth Sports Entertainment, all acquired last year.

Another, Intelvision, was set up last year to tap the broadcasting business through satellite and the Internet.

It has already said it plans to merge the three content subsidiaries into a new company called Penta Entertainment Ltd.

Its overseas subsidiaries include US-based marketing firm Pentamedia Corporation and film production company Improvision Corp, and Singapore-based animation production firm Amimasia International Pte Ltd.

Pentamedia last year announced plans to spin off its Internet broadcasting portal www.numtv.com into a separate entity and sell a minority stake to strategic investors. But the spin-off of the portal, which beams channels to around 300,000 registered users has not materialised yet.

Pentamedia will also seek to renew shareholder approval for a $250 million issue of securities, including possibly an overseas issue. Shareholders had approved this resolution last year, but the company did not proceed with the issue due to poor market conditions.

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