News on Crest, Gateway & Shipping Corp

Crest Animation - Exim Bank Funding Project

Export-Import Bank of India (Exim Bank) is for the first time funding an animation film project. It has agreed to lend $ 7 million to Crest Animation Studios Ltd which has signed a three-picture co-production and co-financing agreement with Lions Gate Entertainment. While $ 5 million will be to fund Crest Animation's Indian outfit, Exim Bank is willing to sanction another $ 2 million in the US subsidiary company, RichCrest Animation.

"We have acquired the rights for Sylvester and Magic Pebble and Alpha & Omega through an SPV between Richcrest Animation and Lion's Gate. Work has begun on Sylvester and Magic Pebble and there shall be a fund requirement of roughly US$ 20 Million over the next two years for these projects. While we have already announced an FCCB of US$ 12 Million, EXIM bank has agreed to lend US$ 7 Million" a Crest Official shared with Animation 'xpress.

"This will be our first financing for an animation movie project. We have agreed to fund Crest Animation Studios as well as its wholly owned subsidiary company in the US. Crest has tied up with Lions Gate Entertainment which is a leading distributor in the world. Besides, the company has a completion bond in place," said Exim Bank general manager Mathew John.

Of the three movie projects with Lions Gate Entertainment, the first to kick off is Sylvester and the Magic Pebble which is based on the Caldecott medal-winning story by William Steig, the creator of the blockbuster Shrek. The pre-production work on the movie is near completion, and the production plan is as per schedule for 2008 release. "Our funding to Crest will be for the first movie," said John. Exim Bank has been funding Hindi movie projects which have a potential to earn foreign currency revenues in the overseas market. It has financed nine movies so far to the tune of Rs 580 million. This includes Rs 400 million to noted filmmaker Yash Chopra for movies like Veer Zaara, Hum Tum, Bunty Aur Babli and Dum. "We have also lent Rs 100 million for Don and Rs 80 million for Mangal Pandey - The Rising," he added.

Gateway Distriparks - Eyeing CFS At Navi Mumbai

Port-based logistics company Gateway Distriparks is close to acquiring a container freight station (CFS) near Jawaharlal Nehru Port Trust in Navi Mumbai. The company is also exploring the option of acquiring a domestic cold chain company to support its refrigerated cargo business.

Sources said the acquisition of this private CFS is likely to be concluded by the month end while negotiations for the acquisition of the cold chain business are in advanced stages.

“After securing an in-principle approval for moving container trains in major routes of country from Railway board, the company is planning to acquire CFS facilities which will supplement the container train operations,” industry sources said. Gateway Distriparks is also looking at acquiring similar CFS facilities in Tuticorin.

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Shipping Corp - Plan To Float JV Gets Cabinet Approval

The government on Saturday gave its approval to state-run shipping giant Shipping Corporation of India (SCI)’s plan to invest $20.88 million for 33.77 per cent stake in a joint venture company in Panama. The joint venture will be formed for the expansion of Petronet LNG Ltd (PLL)’s terminal at Dahej, said Union information and broadcasting minister Priyaranjan Dasmunsi said after a cabinet meeting.

Other partners in the joint venture are Mitsui OSK lines of Japan with a stake of 33.77, Nippon Yusem Kabushiki Kaisha with a share of 21.64 per cent and Kawasaki Kisen Kaisha 10.82 per cent stakes respectively. The share of SCI in the JV may go down to 26 per cent if PLL or its nominee exercises the option to take up 23 per cent share in above JV, the minister added. Besides earning a share of profit to be generated in 25 years of the time charter agreement, the SCI would be the only Indian shipping company to venture into the second LNG transportation business. “By participating in the management, SCI will be able to train and develop its officers which would be useful for future projects.”

PLL was formed by the government in 1998 to set up LNG receiving, storage and re-gasification terminals in the country. These four public sector companies have an equity participation in equal parts to the extent of 50 per cent. While an initial quantity of 5 million metric tonne per annum (mmpta) is being transported on two LNG tankers also owned by joint venture companies, where SAI is already participating with Mitsui OSK Lines, Nippon Yusen Kabushiki Kaisha Lines, Qatar Shipping Company and Kawasaki Kisen Kaisha, the proposed joint venture will be formed to transport the additional quantity of 2.5 mmtpa required for PLL’s expansion project at its Dahej terminal.

-Business Standard