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Our Bureau

Chennai , Dec 1

SSI Ltd plans to acquire management control of the Chennai-based Telephoto Entertainments Ltd as a part of its drive into the entertainment business.

Over the next five years, it will invest Rs 250-300 crore in the entertainment business to build a chain of multiplexes, produce media content for television and films, and distribution, Mr Kalpathi S. Suresh, Chairman and CEO, SSI, told Business Line. Funds would come through a combination of equity and debt, he said.

SSI will acquire 11.5 per cent stake (3.50 lakh equity shares of Rs 10 a share) for Rs 15.25 per share from Telephoto's promoter, Mr Suresh Chandra Menon. It will also make a preferential offer of 30 lakh equity shares and 27 lakh convertible warrants at Rs 15.25, he said.

The total consideration for the purchase would be Rs 5.53 crore. This includes the preferential offer, which has to be approved by Telephoto shareholders. After the acquisition SSI would have a 54.6 per cent stake in Telephoto.

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