Montreal: Malofilm Communications founder Rene Malo, chairman and ceo, has sold his majority ownership interest in the company to BHVR Communications, a new media investment company headed by Richard Szalwinski, Dr. Tom Cantwell and Gary Tregaskis.

bhvr has purchased 69.38% of the company’s class a multiple voting shares and 20.93% of class b subordinate shares at $7.57 per share. The cash deal is worth an estimated $21.3 million.

Szalwinski is chairman and a cofounder of Discreet Logic, the manufacturer and distributor of digital editing and special effects packages including Flame and Flint, and Vapour, a 3D virtual set technology. Cantwell and Tregaskis also hold shares in Discreet, which trades on Nasdaq.

Jean Bureau, former vp of Astral Distribution, is Malofilm’s new president.

Malo remains chairman of Malofilm. A new ceo has not been named.

Senior vp and cfo Stephen Takacsy says the new owners are ‘smart and sophisticatedand if they are willing to cough up $21 million at $7.50 a share, it’s because they think it’s worth it.

‘The main point is that key decisions are being made by an executive committee made up of Rene, Yves Dion (president of Malofilm Distribution), myself, Jean Bureau and Richard Szalwinski (vice-chairman),’ says Takacsy, who has been managing Malofilm on a day-to-day basis in recent months.

Trading in Malofilm stock was halted briefly on Monday April 29, closing down $0.50. The class a stock bounced back the following day to $7.25, its current level.

Sprott Securities analyst Simon Lussier says even though Malo has cashed out, ‘what’s important is that he remains chairman and will devote time to something he really loves, producing.’

Investors will be looking for signs of synergy between bvhr and Malofilm and a possible production acquisition, says Lussier. With Malofilm’s shares going at $7.57, Lussier is recommending a buy.

There had been low-level rumblings that Malo, who had been away from the office due to health concerns, was talking to media giant Group Quebecor. Talks were also held with other parties.

Malofilm reported net profits of $2.3 million on revenues of $39 million in ’94/95. Takacsy says this year’s profits are projected at over $3.5 million on revenues of $45 million to $50 million. Production revenues will make up 20%.

Malofilm production subsidiaries include Megatoon Studios and Desclez Productions. The company is traded on the Montreal and Toronto Stock Exchanges, and has an financial interest in TotalNet, a fast-growing Internet access provider.