In a move aimed at stemming declining losses and generating funds for Indian operations, Chennai-based entertainment company Pyramid Saimira Theatre Ltd (PSTL) has put its businesses and assets in the US and Malaysia up for sale.
In the US, the company has decided to sell off its 21 screens, two radio stations (FunAsiA Radio), a banquet hall and the magazine for Indian diaspora, DesiPages. The assets and businesses up for sale are mainly that of US-based FunAsiA, which was acquired by PSTL in 2007, in addition to PSTL’s own assets, sources told Business Standard.
The US operations are currently being run by PSTL’s subsidiary, Pyramid Saimira Entertainment America (PSEA).
The company has put its film distribution and production businesses, and around 14 screens in Malaysia up for sale. These businesses are being operated under its Kuala Lumpur-based subsidiary, Pyramid Saimira Theatre Chain (Malaysia), a 50:50 joint venture with Malaysia’s Asian Integrated Industries, they added.
In Malaysia, the company was mainly into screening and distribution of Indian, Chinese, Malay and Hollywood films. It was also looking at setting up around 150 multiplexes in that country.
When contacted PSTL Managing Director P S Saminathan confirmed the development.
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“We have decided to recoup the capital invested in some of our overseas subsidiaries, which will be used to strengthen the financial status of the parent company. Moreover, we have decided to concentrate on our business in India,” Saminathan said.
The assets were put on sale last week and PSTL is getting “good response” from potential buyers. He, however, did not name the companies PSTL was in talks with.
PSTL had invested over Rs 100 crore in its overseas businesses across six countries, including Malaysia and China. The company had also entered into tie-ups with the UK-based DTH player, Spize TV, to provide satellite television services in the country.
At present, the company is not looking at selling any other assets, Saminathan confirmed.
In May 2009, PSTL reported losses of Rs 100 crore for the previous financial year in a filing with the BSE. Later in June, the Madras High Court had appointed a Provisional Liquidator (PL) to take charge of the company’s assets, following a petition filed by Mumbai-based Patni Financial Advisors. Patni had accused PSTL of not repaying a Rs 5 crore inter-corporate deposit, and had sought winding up of the company and interim injection on continuing its business. PSTL has sought a stay on the appointment, and the next hearing is posted for tomorrow.