Cinemax to transfer theatre exhibition biz to subsidiary

Cinemax India (CIL) today said it would transfer its theatre exhibition business to a wholly-owned subsidiary Cinemax Exhibition India (CEIL) with effect from April 1, 2012.

The company's board has approved the scheme of arrangement between CIL and CEIL, the firm said in a filing to the Bombay Stock Exchange (BSE).

"One fully-paid equity share of Rs 5 each of CEIL shall be issued and allotted for every one fully-paid equity share of Rs 10 each held in the company (CIL)," the filing said.

Further, the face value and paid-up value per share of the company will reduce from Rs 10 to Rs 5 per share and the aggregate paid-up share capital will also come down from Rs 28 crore to Rs 14 crore, it added.

"Upon the scheme becoming effective, shares of CEIL will be listed on the BSE and National Stock Exchange, and will have a mirror shareholding as that of the company [CIL]," it said.

The scheme is subject to consent, approval of requisite majority shareholders and creditors of the both CIL and CEIL.

Sanction of the High Court of Judicature in Bombay and all other regulatory approvals as may be necessary for the implementation of the scheme, it added.

Cinemax India scrips ended the day on the BSE at Rs 36.20 per share, down 0.69% from the previous close.