Zee Entertainment revises FCCB conversion price to Rs 153.459

Zee Entertainment Enterprises Ltd has announced that the Company had in the year 2004 issued Foreign Currency Convertible Bonds (FCCB or Bonds) denominated in US Dollars aggregating USD 100 Million - comprising of 10,000 0.5% FCCBs of USD 10,000 each, including the Green Shoe Option. Aforesaid was approved by the Board of Directors of the Company at its meeting held on February 11, 2004 and by the Members at the General Meeting held on March 09, 2004.

Till date out of 10,000 Bonds, 9,467 Bond of US$ 10,000 each have been converted in to 21,061,753 equity shares of Re 1 each of the Company. All these shares have been listed on BSE, NSE and CSE.

As per the Clause 6A(iii) of the Terms and Conditions of the Bonds detailed in the Offering Circular dated April 20, 2004, the initial conversion price of Rs 197.235 was subject to adjustment in certain events as specified under clause 6C, which include the demerger of business undertakings of the Company.

To give effect to the adjustments required to the Initial Conversion Price consequent to the demerger of the business undertakings the outstanding Bondholders at their Meeting held on April 18, 2008 in London, had inter alia approved revision of Initial Conversion Price from Rs 197.235 to Rs 153.459 per share, for all conversion requests that may be received by the Company on or after April 18, 2008. Aforesaid shall result in appropriate increase in equity shares of the Company to be issued on conversion of balance 533 Bonds of US$ 10,000 each, outstanding as on date. The exchange rate to be considered for the purpose of conversion shall remain the same at Rs 43.880 - US$ 1.00.

Source : Equity Bulls

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