The Hindu Business Line : BNP Paribas set to pick up 28 cr shares of GV Films

BNP Paribas is set to pick up 28 crore shares of Re 1 each at a price of Rs 1.05 of GV Films. Mr V. Subramonian, President, Corporate Affairs, GV Films, told Business Line that two European hedge funds are likely to pick up another 72 crore shares of the company at the same price.

The share purchases by the hedge funds are scheduled to be finalised by June 14, on the eve of the GV Films' next board meet, he added. GV Films has also proposed to consolidate its one rupee shares into Rs 10 shares for which shareholders' approval would be sought at the AGM on July 11.

Mr Subramonian said that if the resolution regarding the consolidation of share value is through at the AGM, the preferential allotments to BNP Paribas and the two hedge funds could be made at a proportionate price and quantity in July. The board of directors, at present, is seeking shareholders' approval for preferential allotment of equity shares worth up to a maximum limit of Rs 100 crore to provide for possible issue to the hedge funds.

Currently, shares of GV Films are listed on the BSE, Madras Stock Exchange and Hyderabad Stock Exchange. Incidentally, BSE has placed the stock in the B group from T (Trade-to-Trade) group. The company has applied for NSE listing recently.

Tamil Box Office

Meanwhile, GV Films has decided to buy-out the promoters of Tamil Box Office, a Singapore-based movie channel, to an extent of 70 per cent of channel's equity. "Negotiations with the promoters, Pixei Box Office Pte Ltd, are at an advanced stage. The deal is expected to be wrapped up in a month's time from now," the official said. The channel is understood to command a total viewership of around two million, primarily NRIs in Singapore and Malaysia.

On the operational front this fiscal, beginning on April 1, 2006, the company has released two films already. Today, it released a Tamil film and the first film, released from GV stable in 2006-07, was Marathi one. Three Tamil films and one Hindi movie are under production, sources said.

The company is learnt to be negotiating with property owners for multiplex-cum-hotel projects in two other cities in Tamil Nadu. This is in addition to the Madurai project, which the company has already taken up.

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