Balaji Telefilms' board approves scheme of arrangement; shares jump 10%
The company will demerge its film production business into BTL and amalgamate Bolt with BTL
The shares of Balaji Telefilms limited (BTL) surged 10% after the company announced that its Board of Directors have approved the composite scheme of arrangement and amalgamation among the company and Balaji Motion Pictures Limited (BMPL) and Bolt Media, wholly owned subsidiaries.
At 1219 hours the shares of the company were trading at Rs 98.95 per piece, up 9.76%, or Rs 8.80. Till that time, the shares touched a high at Rs 103 and hit a low at Rs 98.
As per the regulatory filing, under the scheme, the company will demerge its film production business into BTL and amalgamate Bolt with BTL.
Commenting on the transaction post approval from Board, Ekta Kapoor, Joint Managing Director, said, "We are happy to receive approval from the Board for the scheme of demerger of BMPL and merger of Bolt. This will help us to focus more efficiently on our content creation capabilities across the genres and formats."
The scheme is subject to the requisite approvals of shareholders of the company, stock exchanges, Sebi, High Court and other regulatory authorities and if approved, it will be effective from 1 April, 2016, the company said.
"The demerger of the film production undertaking of BMPL into BTL will enable the consolidation of the film production business of BMPL with BTL, which is well established and has proven capabilities in content and production. Post demerger, BMPL will focus on the business of film distribution", the company said in its release.