Bacnotan buys HK-based animation company

MANILA, Philippines-Holding company Bacnotan Consolidated Industries Inc. has ventured into business process outsourcing sector by buying nearly the entire stake of an animation company. In a statement to the Philippine Stock Exchange, Bacnotan, which holds the business interests of the del Rosario family, said it spent $6.734 million to buy 80 percent of equity interest of Hong Kong-based One Animate Limited, engaged in business process outsourcing for animation services. Bacnotan is under the Philippine Investment-Management Inc. One Animate owns 95-percent interest in Toon City Animations Inc., a Philippine-based firm, which provides services to clients like Walt Disney and Universal Studios, among others. Toon City provides 2D, Flash and 3d CGI Animation services for various TV, Direct to Video and Theater Feature release production. Bacnotan's subsidiaries include Union Galvasteel Corp. It also owns several schools in the country such as Pamantasan ng Araullo and Cagayan de Oro College. Its affiliates include Phinma Property Holdings Corp., Trans-Asia Oil and Energy Development Corp., AB Capital and Investment Corp. and Asian Capital Corp. Peter Raymond Lee, IGC Securities analyst, said that with Bacnotan's investments in schools, the latest acquisition “will make sense if it compliments" the company's existing business. Company officials earlier told reporters that Bacnotan's schools only offer courses which would ensure that students will find jobs upon graduation. Still, Lee said that the move may only mean that the company was beefing up its portfolio. “Bacnotan is known as a conservative company. I think it's trying to inject growth in its portfolio," he said.GMANews.TV