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The board of Cinemax India in its meeting on 30 September 2011 has approved the scheme of arrangement between Cinemax India (CIL) and Cinemax Exhibition India (CEIL), a 100% subsidiary of the company, and their respective shareholders and creditors (scheme).
Under the proposed scheme, the theatre exhibition business would be transferred from the company to CEIL, with effect from 01 April 2012, which is the appointed date under the scheme.
The board has approved share issue ratio of 1 fully paid equity share of Rs 5 each of CEIL shall be issued and allotted for every 1 fully paid equity share of Rs 10 each held in the company.
Further pursuant to the scheme, the face value and the paid up value per share of the companv to reduce from Rs 10 to Rs 5 per share and the aggregate paid up share capital of the company to reduce form Rs 28 crore to Rs 14 crore.
Upon the scheme becoming effective, shares of CEIL will be listed on the Bombay Stock Exchange and the National Stock Exchange, and will have a mirror shareholding as that of the company.
The scheme is subject to consent approval of requisite majority of shareholders and creditors of the both the company and CEIL; sanction of the High Court of Judicature at Bombay and all other regulatory approvals as may be necessary for the implementation of the scheme.
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