MUMBAI: Indian film company Eros International will be raising £16.7 million via placing of new shares in order to capitalise on further content and associated business acquisition opportunities.
The company will raise the amount by way of a placing by Evolution Securities Limited on behalf of the company of 3,304,825 new ordinary shares of 10 pence each with institutional and other investors at 505 pence per placing share.
The issue of the placing shares is conditional on admission of the placing shares to trading on AIM, for which application has been made. Admission is expected to become effective on 20 July 2007.
Eros International also announced that Beech Investments Limited, which is owned by discretionary family trusts of which Kishore Lulla, Sunil Lulla and Vijay Ahuja, directors of the company, are amongst the potential beneficiaries, will be selling 5,508,041 ordinary shares in the company, also at a price of 505 pence per share. Following this sale Beech will retain an interest in 78,866,959 ordinary shares, representing 69.5 per cent. of the issued share capital of the company. The sale shares will provide increased liquidity in the company’s ordinary shares.
Eros International chairman and CEO Kishore Lulla said, “Since our listing on AIM last year, we have successfully executed the first phase of content and distribution consolidation of the fragmented Indian entertainment industry. Following the announcement of our joint venture with Ayngaran, we see further opportunities to leverage our competitive advantage within the sector and the additional placing will support the execution of this strategy.â€Â
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