Television

Three recently acquired Pentamedia firms being merged into Penta Entertainment

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Chennai-based entertainment graphics major Pentamedia Graphics Ltd has announced it will merge three of its wholly-owned subsidiaries into a new company called Penta Entertainment Ltd.

The three firms are Media Dreams Ltd, Kris Srikkanth Sports & Entertainment, and Mayajaal, says a Madras Stock Exchange press release issued yesterday. The stock swap constituted around 9 per cent of the equity of Pentamedia and 3.519 million shares of the company were allotted at Rs 500 per share.

The three companies were acquired by Pentamedia last December through all stock deals totalling Rs 1760 million. Mayajaal offers themed entertainment such as games, multiplexes etc, Media Dreams focuses on studio entertainment such as television, film software and distribution while Kris Srikkanth Sport & Entertainment offers sports entertainment and has a web presence.

The announcement comes in the wake of a controversy that has arisen Pentamedia being unable to put together the finances for acquiring a 49 per cent stake in the US-based Film Roman.

Film Roman has said it is exploring legal options against Pentamedia for breach of agreement after it rejected Pentamedia's offer of 5 million GDRs at $2 each in a swap for 8.5 million Film Roman shares at $1.17 for a 49.94 per cent equity stake in the company.

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