GV Films announces De-merger proposal & JV for GV Studio city projects

GV Films Ltd has announced that the Board of the Company discussed at length on the Company's proposed plan for de-merger into three entities with 2 new resultant Companies and parent Company intact.

The Board has further decided that the cut off date for de-merger is June 30, 2007 and M/s. Deloitte Haskins & Sells shall submit their detailed report on the demerger on or before July 15, 2007. On receipt of the same the board shall finalise the modalities of the Scheme.

Also the board discussed about the benefits that accrue to the Company on Joint Venture proposal with M/s. President Group, Chaired by Mr. Aboo Bucker, Chennai who has shown keen interest to join with the Company and develop their existing land at Uthandi on East Coast Road, Chennai by forming a special purpose vehicle. The total investment in the project will be approximately Rs 75 Crores. The project will have 75-100 rooms themed hotel, multiplex with 10-15 screens and shopping malls. It was decided to delegate to a Committee of directors to study the feasibility and add on values.

On receipt of the Committee's report the Board shall decide further in this matter.

Source : Equity Bulls

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