Pentamedia To Go For $200m External Float

Pentamedia Graphics Ltd has announced a $200 million global depository /American depositary receipts issue with a greenshoe option of 15 per cent.

Of this, $100 million will be earmarked for acquisitions in the US, Europe, Japan and Singapore.

"We are currently negotiating with eight overseas companies for acquisition," said V Chandrasekaran, chairman and managing director, Pentamedia, while talking to newspersons after the company's annual general meeting.

The company recently acquired Manila-based Kingdom Animasia for $5 million.

It may be recalled that Pentamedia had earlier announced an ADR/GDR issue for $60 million.

The budget for acquisition has been revised upward following the new guidelines allowing overseas acquisitions by Indian information technology companies up to a maximum of $100 million without prior approval.

Earlier, this was restricted to $50 million.

At the annual general meeting, the company's shareholders also approved a resolution to increase the aggregate holding of non-resident Indians/ foreign institutional investors in the company up to a maximum of 40 per cent.

At present, non-resident Indians/ foreign institutional investors hold 30 per cent in the company.