Kolkata firm to buy stake in Pyramid Saimira Productions
By IANSTuesday, October 6, 2009
CHENNAI - Kolkata-based Regent Finance Corp, part of the diversified RDB group, will acquire 40 percent stake in the cash-starved film and television serial production arm of Pyramid Saimira Productions International (PSPI) for Rs.40 crore.
“We have put in Rs.20 crore initially. The valuation process of the company is being done by Pricewaterhouse. Our idea is to invest Rs.40 crore for around 40 percent stake,” Vinod Baid, chief executive of Regent Finance, told reporters.
Regent Finance will nominate three representatives on the PSPI’s board.
However, the daily management of the company would remain with Pyramid Saimira. “We are just a financial investor,” Baid said.
PSPI will be listed by next June and $100 million raised by way of debt or equity, he added.
“The company also has Rs.50 crore line of credit from Exim Bank which will be availed.”
P.S. Saminathan, group managing director of Pyramid Saimira, said PSPI would no longer be a subsidiary of the parent company.
“The fresh funds will enable the company to proceed with the completion of 17 movies,” he said.
