Balaji Telefilms streamlines group structure

The Board of Directors of Balaji Telefilms (BTL) at their meeting held today approved the composite scheme of arrangement and amalgamation among BTL, Balaji Motion Pictures (a wholly-owned subsidiary of BTL), BOLT Media (another wholly-owned subsidiary of BTL) and their respective shareholders and creditors for the demerger of the business and the business interests of Balaji Motion Pictures in the film production undertaking into BTL and the amalgamation of BOLT with BTL.

This scheme is subject to the requisite approvals of stakeholders of the company, Stock Exchanges, SEBI, High Court and any other regulatory/ statutory authorities as may be required, and if approved, would be effective from April 1, 2016.

The demerger of the film production undertaking of Balaji Motion Pictures into BTL will enable the consolidation of the film production business with BTL. Post the demerger, Balaji Motion Pictures will focus on the film distribution business.

BOLT is in a similar line of business as BTL and its amalgamation with BTL will help in focussed and effective utilisation of the production activities. 

The rationale of the Board for approving this Scheme is as follows:

  • Streamlining of Group structure: The Scheme is expected to enhance efficiencies and combine similar business interests, optimise operational synergies, resulting in focused management and efficient administration.
  • Consolidation of the business o perations: The Scheme is expected to result in improving allocation of capital, operational efficiency, integration of processes and optimising cash flows, thus contributing to the over all growth prospects of BTL
  • Reduction in Costs: The Scheme is expected to enable pooling of resources of BTL, BMPL and BOLT resulting in more productive utilisation of resources, cost and operational efficiencies which would be beneficial to all the stakeholders.

Commenting on these transactions post approval from the Board, Ekta Kapoor, Joint Managing Director, Balaji Telefilms, said, “We are happy to receive approval from the Board of Directors for the scheme of demerger of BMPL and mer ger of BOLT. This will help us to focus more efficiently on our content creation capabilitie s across the genres and formats.”

Sameer Nair, Group CEO, Balaji Telefilms, added here, “W e are committed to improving margins and profitability and consolidation of our operations is a step in that direction leading to a better value creation for all our shareholders. This will also ensure more efficient use of senior management’s bandwidth, thereby allowing more time to focus on ALT Digital our digital foray which is set to redefine the entertainment viewing experience of Indians in India and across the globe.”

In relation to the transaction, Axis Capital Limited is acting    as advisor and Shardul Amarchand Mangal das & Co, Advocates & Solicitors is acting as legal advisor to Bala ji Telefilms Limited.
 

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