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Pentamedia to buy 49.95 per cent in Film Roman

Leading Indian animation firm Pentamedia Graphics Ltd on Thursday said it has reached an agreement to buy 49.95 per cent in US-based animation producer Film Roman Inc.

The deal was struck under new terms, a company spokeswoman said.

Film Roman had served notice to Pentamedia last month to honour an agreement to buy a 60 per cent stake by paying $15 million in cash for a bloc of newly issued shares, but Pentamedia officials had been trying to renegotiate the deal.

"Film Roman Inc has reached an agreement with Pentamedia to modify their original agreement," the spokeswoman said.

"Film Roman will issue one share of new common stock for every $1.17 in value it receives from Pentamedia," she said, adding that on completion of the deal Pentamedia will own 49.946 per cent of new common stock of the company at a valuation of upto $10 million.

She added that the two firms had not yet decided on whether the deal would be a cash or stock deal.

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