(30 November 2005 9:00 pm)

MUMBAI: Chennai-base television-film production house Telephoto Entertainments Ltd is planning to sell majority stake to SSI Ltd.

The company has decided to make a preferential allotment to SSI Ltd at a price that will be arrived at according to the SEBI (Securities and Exchange Board of India) investment guidelines.

The company will make the allotment of equity shares and warrants with the option to convert them into equity shares up to Rs 100 million. This will enable the television content production house to generate long term resources for implementing future growth plans.

SSI plans to acquire management control in Telephoto, subject to regulatory approvals. "The preferential offer is proposed to be made to SSI Ltd, subject to necessary approval from shareholders," Telephoto informed BSE on Wednesday. The company plans to convene an Extra Ordinary General (EGM) meeting on 30 December to seek shareholder approval.

With the deal, SSI Ltd, which exited the software services and education business and ventured into real estate and hospitality sector, will be making its foray into the entertainment segment.