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MUMBAI: Telephoto Entertainments Ltd is changing its business plan.
Television serial production will be out and taking its place will
be multiplex business, according to Telephoto company secretary
S Ganesan.
The first step in this direction is the entire buy out of Chennai-based
AGS Properties Development India Pvt Ltd. which is engaged in the
business of multiplexes. Telephoto board has given the nod to buy
out 100 per cent of the equity share capital of AGS.
Telephoto will also provide a debt of Rs 80 million to AGS after
the acquisition is complete. This will be outside the acquisition
price which Telephoto has agreed to pay, Ganesan said. "AGS
will become a wholly owned subsidiary of Telephoto," he added.
AGS is setting up a five-screen multiplex in Chennai at an estimated
investment of Rs 120 million. The company has already taken a term
loan of Rs 90 million from a nationalised bank. The balance Rs 30
million will be provided as debt by Telephoto, Ganesan said.
AGS has also plans to develop a seven-screen multiplex for which
the project cost is still to be worked out. Telephoto will part-finance
this project as well in the form of loans and advances.
Telephoto, a production house promoted by Revathy and Suresh Menon,
was acquired last year by SSI Ltd through a preferential allotment
of equity shares and warrants with option to convert them into equity
shares. Currently, SSI holds 54 per cent while the founder promoters
of Telephoto have 18 per cent stake in the company. "SSI's
holding will go up to around 72 per cent after conversion of warrants,"
said Ganesan.
Telephoto had produced movies and serials like Nirangal (SunTV),
Anthariyalu (dubbed, Gemini TV) and Boom Boom Shaka Laka
(Sun TV, Gemini TV, Surya TV).
Also read:
SSI
to acquire controlling stake in Telephoto Entertainment
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