US film co to take 40% stake in Kaashyap Radiant
Asia Africa Intelligence Wire (accessmylibrary)
Chennai September 12, 2002
Business Line
United National Film Corporation Ltd is likely to offer 50 per cent cash and the rest in equity swap. The offering is likely to be in tranches, depending upon the performance of the projects.
THE US-based United National Film Corporation Ltd is to take a 40 per cent stake in the city-based Kaashyap Radiant Systems Ltd.
The price at which the stake will be acquired is being worked out. While Kaashyap is negotiating for around Rs. 30 per share, the US firm may end up paying Rs. 20-25 per share, said company sources.
The company's average share price last year was around Rs. 14 per share, sources said. Kaashyap's paid-up equity share capital as on June 30, 2002 was Rs. 40.22 crore.
The California-based firm is likely to offer 50 per cent cash and the rest in equity swap. The offering is likely to be in tranches, depending upon the performance of the projects. "We prefer cash for equity, as we are need the former at the moment," sources said.
Meanwhile, Kaashyap Radiant has also entered into advanced stage of finalisation for an order of $2.5 Million to produce computer graphics special effects and related software services with the United National Film Corporation (UNFC). The $2.5 Million is like a letter of acceptance for taking the stake, sources said.
About 60 employees from Kaashyap will work on a multimedia project called "First Fear", sources added. UNFC taking a stake in the company will be subject to compliance of all formalities with the Foreign Investment Promotion Board (FIPB), RBI and SEBI. The US firm has completed due diligence and will be making an open offer as part of the acquisition as per SEBI and other statutory norms, says a Kaashyap Radiant information to the Bombay Stock Exchange.
UNFC, through its subsidiary Titus Production, Inc, produces television series, television specials, made-for-home pictures and feature-length motion pictures.
The company is developing and preparing two scripts for production. The scripts include "Specific Intent" and "Gerry was her code name". The company also produces a collection of videotapes for an animated series called "Snappy", which are directed at children.
The BSE information further says that Kaashyap had completed 25 per cent of the work of the order from Alpha Energy Division and posted a revenue of Rs. 35 crore. Another project in the pipeline is 40 MW bio-mass project in Andhra Pradesh, which is to be taken up close on the heels of completing the first job in the next 12 months.