Pyramid Saimira to raise US$ 100 million in FCCB

Pyramid Saimira Theatre Ltd has announced that the Board of Directors of the Company at its meeting held on February 20, 2007, has discussed and decided the following:

1. The Board discussed at length and approved the Company's plan to raise US$ 100 million in FCCB. The Board also approved the consequent resolutions arising out of this FCCB issuance. The Board also recommended to the shareholders of the Company to approve the same and an EGM to be called for this purpose.

2. The Board also approved the Company's plan to be a partner in Special Purpose Vehicle (SPV) to be formed along with developers of realty Companies to establish about 100 malls with multiplexes in South India and about 100 malls with multiplexes in rest of India. The Board also discussed and approved the JVs to be formed with those reality Companies. The Board also approved an investment up to 50% shareholding in the respective SPVs to be formed, but not below 26%.

3. The Board also discussed and approved the investment in the form of capital into these SPVs based on the financial closure plan of the respective SPVs. As per initial estimates these SPV will create approx 60 mil sft with an investment of Rs 20,000 crores spread over four years.

4. The Board discussed and approved the increase in FII limit to 40% of the paid up capital of the Company.

5. The Board discussed and ratified the agreement signed regarding the formation of a Malaysian Joint Venture (JV) Company named as Pyramid Saimira Theatre Chain (Malysia) Sdn. Bhd. The Board also approved RM 100 million investment by PSTL into that JV Company.

6. The Board also discussed and approved Malaysian JV Company's plan for being a catalyst in constructing 100 new entertainment centers / malls, creation of a real estate investment Trust to acquire the above said assets and also make Pyramid Saimira Theatre Chain (Malaysia) Sdn.Bhd as an asset management Company to manage assets created, which is approx. of the value of US$ one Billion. The Board deliberated and approved Malaysian JV Company's plan to acquire an existing theatre chain Company and an existing content distribution Company in Malaysia for a faster ramp up of operation.

7. The Board also recommended Employee stock holding scheme to be created to motivate employees and make employees of Pyramid group as stake holders in growth of PSTL. Consequent resolutions in ESOP are also approved by the Board.

8. The Board discussed and approved the proposal by the Company to be a sponsorer in content fund which will fund production houses in content creation. The Board also discussed and approved up to US$ 25 million investment into these content find as a sponsorer. The Board also discussed and approved that the Company can incur consequent expenditure in raising US $ 150 million content fund in India and abroad.

9. The Board also ratified the Completion Guarantee agreement signed by the Company which provides insurable completion guarantee.

10. The Board also discussed and approved the proposed content distribution and theatre chain creation in London and North American market. The Board authorized the Managing Director Mr. P S Saminathan for negotiation and decision with the existing content distributors in London and North American market.

11. The Board also requested the Independent Director Dr. S Ramani to head a panel in creating institutional courses for Film industry in collaboration with Malasyian Universities.

12. The Board also commended the performance of the Company from January 01, 2007 till date and expressed satisfaction in the progress made. The Board also appreciated the presentation made by the COO-Karnataka, Mr. Somasekhar and COO-Tamilnadu, Mr. K S Srinivasan with regard to the progress made and future plans.

Source : Equity Bulls

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