Warner Likely To Pick Up 10% Stake In Crest

Crest Communications Ltd, the Mumbai-based media entertainment company is in talks with foreign players to allow them an equity participation in the company. Company officials confirmed the news but refused to comment on the identity of the likely foreign partner.

"We are open to foreign participation in the company either strategic or through equity," said Kumar Iyer, company secretary, Crest Communications.

"We are in talks with international players in this regard. However the talks are in a preliminary stage and we would not like to comment on it at this stage," he added.

Market sources say that Warner Bros, the American media entertainment giant is likely to pick up a 10 per cent holding in the company.

 

When asked whether Warner Bros was also one of the players in fray for picking up a stake in the company, Iyer refused to confirm or deny the development.

"We have provided some of our works to Warner Bros and Walt Disney and they are satisfied with it," he said.

The news about Warner Brothers picking up the stake has been doing the rounds in the market and invoked a lot of interest in the stock. The scrip has been on the ascend for the past couple of weeks, even in a falling market. Yesterday the scrip closed at Rs 41.85 on the BSE, up Rs 2.75 over the previous close. On the NSE, the scrip closed at Rs 41.90 after touching a new 52 week high of Rs 42.90 during intra day trading.

Crest Communications Ltd provides a range of services to the electronic media industry in areas of advertising, computer graphicsevision programmes and post production services. It also provides special effects for Indian and Hollywood Motion Picture Houses.

The company had recently passed a resolution enabling it to allow FIIs to invest in shares of the company upto 30 per cent of the paid up share capital of the company.

At present, foreign holdings in the scrip account for a meagre 4-5 per cent of the equity capital bulk of which is through overseas corporate bodies.

Analysts tracking the sector feel the presence of an international player in the company will improve the perception of the management in the minds of market players.

Also, the foreign partner will greatly accelerate the flow of business in areas of computer graphics, special effect and animation.

Currently, promoters hold around 22 per cent stake in the company, corporate bodies hold 30 per cent while public holding is a little over 25 per cent.