Pyramid Saimira plans to raise funds through stake sale
By IANSTuesday, October 6, 2009
CHENNAI - City-based entertainment group Pyramid Saimira has said it will raise funds by divesting equity up to 40 percent in its group firms.
“We are open to divest up to 40 percent in the group companies which would give the much needed cash for operations in the short-term,” P.S. Saminathan, group managing director of Pyramid Saimira, told reporters.
The group is now looking for investors interested to buy stake in the wholly-owned subsidiaries of the cash-starved Pyramid Saimira Theatres.
“We want to derisk the flagship company Pyramid Saimira Theatres and also insulate other group companies from the problems afflicting it,” he added.
The first company to undergo the rejig is the group’s movie and television serial production arm Pyramid Saimira Productions International (PSPI).
Kolkata-based RDB group has decided to invest Rs.40 crore for around 40 percent in PSPI.
“PSPI will no longer be a subsidiary of Pyramid Saimira Theatres. The fresh funds will enable the company to proceed with the completion of 17 movies,” Saminathan said.
Next in line is the marketing company Dimples Cine Advertising. “Negotiations are on with some interested parties,” he added.
Saminathan hopes to generate around Rs.250 crore by equity dilution in subsidiary companies.
–Indo Asian News Service
