Music company JMD Telefilms Industries Ltd has stated that Hong Kong-based Century Exports Ltd expressed an interest to buy a majority stake to become ‘a strategic stakeholder’ in the company. The BSE-listed firm has called a board meeting on July 25 to discuss the offer.
“Century Exports has shown keen interest in acquiring a strategic stake and it is also keen to buy even a majority stake in JMD Telefilms Industries,” the company said in a filing.
JMD Telefilms had earlier announced a strategic alliance with Century Exports, a player in the mobile handsets and devices market, based out of China.
JMD was originally incorporated as Avtar Finance & Management Consultants in the 1980s and in 2001, forayed into regional entertainment industry. According to its site, it has around 1,200 music albums and over 30,000 song titles in its portfolio. JMD also produces shows for regional television and radio channels in India.
The share price of JMD Telefilms closed at Rs 16.20 per unit, up 4.52 per cent. The scrip hit a 52-week high in intra-day trading, reaching Rs 17 per share. While the promoter group holds a little over 20 per cent stake in JMF Telefilms, the rest is held by institutional investors and the public.
JMD reported 20 per cent increase in revenues to Rs 103.49 crore, with net profits nearly doubling to Rs 3.1 crore in FY11. It also completed two acquisitions earlier this year, buying Mumbai-based Bajaao.com for Rs 5 crore and Gulf-based digital media agency Gate FZCO.