Thaindian News

Chennai, Jan 12 (IANS) The key promoter of city-based entertainment company Pyramid Saimira Theatre Limited, P.S. Saminathan has reduced his stake in the company by six percent to 17.989 percent. In a notification to the bourses Monday, the company said Saminathan, the chairman, has sold just over 1.707 million shares (6.037 percent) Dec 20-31, 2008, for Rs.64.27 million (Rs.6.42 crore) in an off-market transaction.

As per the notification, 425,000 shares transferred for Rs.12.5 million (Rs.1.25 crore) on Dec 20, 2008, will have to be retransferred to Saminathan on repayment of the loan.

While Saminathan could not be reached for his comments, an official told IANS that the lenders to whom he had pledged shares have offloaded their holdings.

Another promoter, Uma Saminathan, sold 152,839 shares between Oct 10-Dec 1 last year.

On Jan 5, promoter Nirmal Kotecha sold 1,836,844 (6.494 percent) stake, thereby bringing down his holdings to 15.488 percent in the company.

Interestingly, Saminathan had earlier agreed to buy 22 percent stake from Kotecha for Rs.200 per share and nearly double his stakes in the company.

With the stock market going down, Saminathan said the deal had to be revisited.

On the last day on which he had to exercise his option, the issue of a fake letter from the Securities and Exchange Board of India (SEBI) directing him to make an open offer to minority shareholders cropped up and the deal died. SEBI has registered a police complaint in Mumbai.