Crest Animation, subsidiary to divest stake to D E Shaw Group

New Delhi, Aug 31 (UNI) Crest Animation Studios Ltd today said its board has in-principle approved to divest 14.99 per cent stake in the company and up to 26 per cent holding in its US subsidiary Rich Crest Holdings Inc (RCH), to US-based D E Shaw Group for a consideration of 40 million dollars.

The investment in the company is proposed to find the ongoing expansion and upgrade of the company's 3D animation facilities and to meet the long term working capital requirements of the business.

The investment in the subsidiary is to fund the requirements of RCH, which is actively involved in the 3D animated movies business.

''D E Shaw has deeply understood the potential of 3D animation in India and the significant global opportunities for Crest. The proposed investment is tailored to enable Crest and its subsidiaries to build a powerful presence in the 3D animation business worldwide, across the formats of television, DVD and feature films,'' company Managing Director Seemha Ramanna said.

The agreement also sanctions zero per cent coupon finance for production of animated feature films. This financing cements the company as one of the few 3D CGI studios globally that is active in co-production of feature films with a major motion picture distributor.

RichCrest Animation Inc, located in Burbank, California, has entered into an agreement to co-produce three full-length 3D animated feature films in a joint venture with Lions Gate Inc, a movie distribution company in the United States.

The first of the three feature films, titled 'Sylvester and the Magic Pebble', has a planned release in 2008. The second movie project, titled 'Alpha&Omega', is currently in the development stage, and is planned for release in 2009.

D E Shaw Group is a specialised investment and technology development firm that comprises a number of entities with around 23 billion dollars in aggregate capital.

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