Crest Animation to secure USD 40 mn of financing from U E Shaw

Mumbai, Aug 31 (UNI) Crest Animation Studios has agreed in principle to secure zero percent coupon finance worth USD 40 million from U E Shaw Group for production of animated feature films.

Announcing this to the BSE, the Company said the proposed investment, representing an aggregate infusion of up to USD 40 million -- subject to shareholder's approval, will enable the D E Shaw group to hold l4.99 per cent of the Company and up to 26 per cent of its subsidiary RichCrest Holdings Inc (RCH).

This financing by U E Group cements the Company as one of the few 3-D CGI studios globally that is active in co-production of feature films with a major motion picture distributor.

RichCrest Animation, located in Burbank, California, has entered into an agreement to co-produce three full-length 3-D animated feature films in a joint venture with Lions Gate, a leading 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.

Specifically, the investment in the Company is proposed to find the ongoing expansion and upgrade of the Company's 3-D 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 RichCrest Animation which is actively involved in the 3D animated movies business.

Ms Seemha Ramanna, managing director of the Company, commenting on the proposed investment by the D E Shaw group, said, ''D E Shaw has deeply understood the potential of 3-D animation in India and the significant global opportunities for Crest. The proposed investment is custom-tailored to enable Crest and its subsidiaries to build a powerful presence in the 3-D animation business worldwide, across the formats of television, DVD and feature films.'' The D E Shaw group is a specialized investment and technology development firm that comprises a number of entities with approximately USD 23 billion in aggregate capital.

UNI SN MAZ SKB1820