Business Daily from THE HINDU group of publications
Wednesday, Feb 13, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Wednesday, Feb 13, 2008 ePaper | Mobile/PDA Version |
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Corporate
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Overseas Investments Variety - Entertainment & Leisure Pyramid Saimira close to acquiring UK theatre chain company
Half the funds raised will be used as a corpus for an REIT that Pyramid Saimira plans to float. $500 million will be for distribution, production, technology, infrastructure development in its theatres. M. Ramesh Chennai, Feb. 12 On the heels of its acquisition of the UK-based Aurona Technologies, Pyramid Saimira Theatres Ltd is on the verge of acquiring another company in that country, PSTL’s Managing Director, Mr P.S. Saminathan, told Business Line today. He said the company to be acquired is a theatre chain that owns 70 screens in the UK without divulging its name. However, the size of the deal is “around $100 million.” Asked how the deal would be funded, Mr Saminathan said that raising money abroad for acquisitions is not a problem. To raise $1 bThe Chennai-based Pyramid Saimira has drawn up plans to raise $1 billion abroad to fuel its various activities. Half the amount is for providing the initial corpus for a Real Estate Investment Trust (REIT) the company would float. The REIT intends to buy 500 movie theatres.The other $500 million is for distribution ($200 million), production ($100 million), investment in technology mainly in the areas of post-production and animation ($100 million), and the rest for other activities such as infrastructure development in its theatres. Pyramid Saimira closed 2006-07 with a turnover of Rs 164 crore and a net profit of Rs 13.43 crore. A company of that size raising Rs 4,000 crore? In response to this, Mr Saminathan drew attention to the company’s performance in the first nine months of the current year — turnover was Rs 502 crore and net profit Rs 60.98 crore. In the third quarter alone, the turnover was Rs 233 crore and net profit Rs 30 crore, which were five times and six times respectively over the achievement in the corresponding period of last year. Pyramid Saimira, Mr Saminathan said, has been growing aggressively, straddling the movie market with content generation (or film production) and exhibition — in the process, eliminating the middle-man, the distributor. Last year, the company’s production subsidiary, Pyramid Saimira Production International Ltd, produced 13 films. Pyramid Saimira Theatres distributed about 100 films. “To raise a billion dollars abroad is not a problem,” says Mr Saminathan. Since the Pyramid Samira group — comprising the parent company, Pyramid Saimira Theatres Ltd, and its seven subsidiaries — has operations in Malaysia, Singapore, the US and the UK, a substantial part of the funds raised would be spent abroad. The company plans to produce 40 films next year, Mr Saminathan said. More Stories on : Overseas Investments | Entertainment & Leisure
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