GV Films alters demerger scheme

GV Films Ltd has announced that Committee of Directors (CoD) of the Company at its meeting held on October 01, 2007, has discussed the shareholders’ view and the recommendations of the Directors of the Company, at their meeting held on September 24, 2007, on the subject of modification to the scheme of demerger originally approved by the Board on July 16, 2007 and decided to modify a portion of the Scheme to the effect that, the face value of GVFL (demergerd Company) will remain at Rs 10/- and not reduced to Re 1/- as decided earlier. As against the reduction in face value of shares, it has now been decided to cancel 31,33,98,000 equity shares of Rs 10/- of the demerged Company.

Further the Company has informed that, no change in share swap ratio is considered.

The gist of the modification is explained hereunder:

The Scheme of demerger now proposes the following:

Issue of

- 1 (one) fully paid up equity share of Re 1/- each of G V Studio City Ltd and

- 1 (one) fully paid up equity share of Re 1/- each of G V New Media Technologies Ltd

For every 3 (three) fully paid-up equity shares of Rs 1O/- each held in G V Films Ltd

Earlier, the Scheme of demerger proposed the following:

- 1 (one) fully paid up equity share of Re 1/- each of G V Studio City Ltd and

- 1 (one) fully paid up equity share of Re 1/- each of G V New Media Technologies Ltd

For every 3 (three) fully paid-up equity shares of Rs 1/- each held in G V Films Ltd.

As per the Scheme of Demerger GVFL will be de-merged into two separate entities (two resulting entities viz. G V Studio City Ltd and G V New Media Technologies Ltd) with the demerged Company - GV Films Ltd - intact.

The assets and liabilities of the entertainment infrastructure division (exhibition) will be transferred to new entity 'G V Studio City Ltd' and that of the web-casting division will be transferred to the new entity 'G V New Media Technologies Ltd'. The production, distribution and teleserial business shall remain with the parent Company, i.e. G V Films Ltd.

As per the modified scheme the paid up capital of M/s. G V Films Ltd after the demerger will be reduced to Rs 34,82,20,000/- divided into 3,48,22,000 equity shares of Rs 10/-each by cancellation of 3l,33,98,000 Equity Shares of Rs 10 each.

Source : Equity Bulls

Keywords