Date:16/06/2007 URL: http://www.thehindubusinessline.com/2007/06/16/stories/2007061604871000.htm

Back Compact Disc arm to list on London SE

Our Bureau

New Delhi June 15 Compact Disc India (CDI), the animation film outsourcing company, will list its new subsidiary — MediaOne — at the Alternative Investment Market in London. The company hopes to raise $50 million (Rs 613 crore) for MediaOne, its international film production division.

MediaOne will produce or collaborate on international live action and animation films. Launched with an initial investment of Ł1 million (Rs 8 crore), the Chandigarh-based company expects at least four international projects per year from its subsidiary. The new venture's access to the Intellectual Property Right of the animations should also help it tap possible revenues from merchandise business, said CDI.

"We are now at a point where the business is of sufficient scale to exploit the significant opportunities presented to us by the growing entertainment sector globally," said Mr Gautam Seengal, Managing Director, CDI, in an official statement.

"An overseas listing will facilitate joint ventures, acquisitions, alliances in major international markets with global film companies. With our close association with media majors such as Canyon Films, Pantheon Entertainment Corp, Hyde Park Films and Working Titles Films we will be uniquely positioned in the global film market," he added. Law firm Howard Kennedy and investment bankers, Society General Hambros have been appointed as advisors.

CDI has a $20.15-million (about Rs 82.5 crore) co-production deal with Motion Pixel Corporation for an animation film GoaaaaaL! featuring Brazilian footballer Ronaldo. The company, which is also producing Guru of Sex, a film starring Sir Ben Kingsley and written by Mr Farrukh Dhondy, said that another two projects are being finalised.

According to CDI, the Indian animation industry is now pegged at $550 million (Rs 2251 crore) and is expected to grow at 30 per cent annually over the next few years to reach $15 billion (Rs 61,393 crore) by 2010.

Shares of the company's on the BSE closed at Rs 26.65 up by about 5 per cent from the previous day's close of Rs 25.40.