P. S. Saminathan to buy 24.9 % in Pyramid Saimira
Televisionpoint.com Correspondent | Mumbai
P. S. Saminathan, one of the promoters of one of India's largest theatre chains, Pyramid Saimira Theatre (PSTL), plans to buy around 7 million shares, or 24.9 per cent of equity in the company, from the other two promoters NC Ravichandran and Nirmal Kotecha for around Rs 150 crore.
Currently, Kotecha holds a little over 24 per cent stake in PSTL while Ravichandran holds less than 1 per cent stake. The shares are expected to be bought at Rs 200 each and will raise Saminathan's holding in the company to 46.9 per cent. He is the chairman and managing director of the PSTL.
The mode of proposed acquisition will be by a way of inter se transfer of shares and the date of proposed acquisition is from October 15, 2008. However, the deal will not attract any open offer and the Securities and Exchange Board of India has given a nod for the same.
The company has recently announced its plans to cut down on its expansion as it is losing money in northern and western India. The theatre chain has also closed down 25 screens in western India and another eight in northern India in the last three months.
The firm, which had been planning to raise Rs 300 crore, may now defer some of the fund-raising because of the cutback. The company has borrowed Rs 150 crore from banks, and expects consolidated revenue in 2008/09 to grow 35 per cent to Rs 1400 crore.
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P. S. Saminathan |
Currently, Kotecha holds a little over 24 per cent stake in PSTL while Ravichandran holds less than 1 per cent stake. The shares are expected to be bought at Rs 200 each and will raise Saminathan's holding in the company to 46.9 per cent. He is the chairman and managing director of the PSTL.
The mode of proposed acquisition will be by a way of inter se transfer of shares and the date of proposed acquisition is from October 15, 2008. However, the deal will not attract any open offer and the Securities and Exchange Board of India has given a nod for the same.
The company has recently announced its plans to cut down on its expansion as it is losing money in northern and western India. The theatre chain has also closed down 25 screens in western India and another eight in northern India in the last three months.
The firm, which had been planning to raise Rs 300 crore, may now defer some of the fund-raising because of the cutback. The company has borrowed Rs 150 crore from banks, and expects consolidated revenue in 2008/09 to grow 35 per cent to Rs 1400 crore.
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