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| Pyramid Saimira to dilute 40% in all 8 subsidiaries |
| T E Narasimhan / Chennai Oct 07, 2009, 00:53 IST |
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As part of a restructuring plan, the Chennai-based Pyramid Saimira group, which produces films, has decided to dilute 40 per cent stake in all its eight subsidiary companies. It hopes to raise up to Rs 300 crore by doing so.
 It has begun with a 40 per cent dilution in Pyramid Saimira Productions International Ltd (PSPIL) to the Kolkata-based RDB Group. And is planning similar dilution in the other companies in the next six months. PSPIL is planning to raise $100 million to fund its upcoming film and serial projects.
Speaking at the sidelines of a function to release audio-cassettes of two movies produced by the group, chairman P S Saminathan said the total valuation of these companies is around Rs 600 crore. “The group has decided to dilute stakes, to 40 per cent, in all the companies to strategic partners. The group will also give away 25 per cent stake to the group company’s shareholders,” he said.
Saminathan said the next company to see a dilution of stake will be Dimples Cine Advertising, which markets airtime and tele-tracking, among other things.
“Our aim in diluting stakes is not only to raise money, but also to bring in a long-term partner who can be part of the management,” said Saminathan. Some of the reasons for the present difficult state it is in, he said, are “lack of management and over expansion”.
He mentioned the company having deposits worth Rs 169 crore with various theatre operators. “As part of over-expansion, we went and put money on the theatres which we are not able to retrieve now and not able to support these theatres with good content.” The production company has decided to invest Rs 120 crore to produce 17 films during the current financial year and another Rs 198 crore in 2010-11 to produce 28 films, said Saminathan.
PSPIL has divested 40 per cent to the RDB group. The latter has invested Rs 40 crore through its private equity arm, Regent Finance Corporation Pvt Ltd. Vinod Baid, chief executive officer of Regent Finance, said the proposed investment will be used mainly to finalise production of 17 movies, on hold due to financial constraints.
Saimira peace offer to Kamal
Pyramid Saimira today said the company would like to continue the film project, Marmayogi, in which Tamil film star Kamal Hassan was supposed to act and for which it is being sued by him, for misrepresentation and defamation. Saimira had alleged that Kamal took the fee and diverted the money to other projects.
After which, Kamal sought Rs 11 crore, plus interest, in damages. Vinod Baid, CEO, Regent Finance, which took a 40 per cent stake in the Pyramid Saimira production company, said, “We would like to produce Kamal Hassan’s movie and wish to complete the project.”
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