June 24, 2022 | |
The Manager (Listing) | The Manager (Listing) |
National Stock Exchange of India Limited | BSE Limited |
Exchange Plaza, 5th Floor, | Phiroze Jeejeebhoy Towers |
Plot No. C/1, 'G' Block | Dalal Street |
Bandra-Kurla Complex | Mumbai 400 001 |
Bandra (E) | Scrip Code: 509077 |
Mumbai 400 051 | |
Scrip Code: PRESSMN | |
The Secretary | |
The Calcutta Stock Exchange Limited | |
7 Lyons Range | |
Kolkata 700 001 | |
Scrip Code: 26445 | |
Dear Sirs/Madam, | |
Sub: | Outcome of the meeting of the Board of Directors of Pressman Advertising Limited held on June 24, |
2022 and disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing | |
Obligations and Disclosure Requirements) Regulations 2015, as amended ("SEBI LODR Regulations") |
Pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Board of Directors of the Company ("Board") at its meeting held on June 24, 2022 have, inter-alia, considered and approved the draft Scheme of Arrangement between Pressman Advertising Limited and Signpost India Limited (formerly known as Signpost India Private Limited) and their respective shareholders under Section 230 to 232 of the Companies Act, 2013 ("Scheme").
The Scheme as aforesaid is subject to necessary approvals by the stock exchanges, Securities and Exchange Board of India, shareholders and creditors of the companies, Hon'ble National Company Law Tribunal and such other statutory and regulatory approvals as may be applicable.
The Scheme as approved by the Board of Directors, will be available on the website of the Company at www.pressmanadvertising.inpost submitting the same to the stock exchanges.
In terms of the Listing Regulations read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 09, 2015, as amended, we are furnishing herewith the details of the Scheme as Annexure I.
The meeting of the Board of Directors commenced at 3:00 pm and concluded at 4:30 pm.
You are requested to take the same on record.
Thanking you
Yours faithfully,
For Pressman Advertising Limited
Paulami Mukherjee
Company Secretary & Compliance Officer
Membership No. A49780
Encl.: a/a
ANNEXURE I
1. | Amalgamation | |||||||||||
a. | Name of the entities forming | Transferor Company: Pressman Advertising Limited | ||||||||||
part of the amalgamation, | Transferee Company: | Signpost India Limited (Formerly known as | ||||||||||
details in brief such as size, | Signpost India Private Limited) | |||||||||||
turnover etc; | ||||||||||||
Name of the | Revenue from Operations | Total equity as on | ||||||||||
Company | as on March 31, 2022 | March 31, 2022 | ||||||||||
(Rs. in mn) | (Rs. in mn) | |||||||||||
Pressman | Standalone : 163.68 | 445.15 | ||||||||||
Advertising Limited | Consolidated: NA | NA | ||||||||||
Signpost India Ltd. | Standalone : 1550.40 | 1021.90 | ||||||||||
(Formerly known as | Consolidated:1688.90 | 1026.70 | ||||||||||
Signpost India Pvt. | ||||||||||||
Ltd.) | ||||||||||||
b. | Whether the transaction would | Transaction does not | fall within related party transactions. | |||||||||
fall within related party | ||||||||||||
transaction? If yes, whether | ||||||||||||
the same is done at "arms' | ||||||||||||
length" | ||||||||||||
c. | Areas of the business of the | Name of the Company | Area of Business | |||||||||
entity(ies) | ||||||||||||
Pressman Advertising Limited | Transferor | Company | is | a | public | |||||||
listed company engaged in the business | ||||||||||||
of Advertising, Public Relations, Design | ||||||||||||
and Digital Work etc. | ||||||||||||
Signpost | India | Ltd | Transferee | Company | is | an | unlisted | |||||
(formerly known as Signpost | public company, one of India's largest | |||||||||||
India Pvt. Ltd.) | Digital Out of Home Enterprises with | |||||||||||
wide experience in implementing large | ||||||||||||
scale public oriented projects, including | ||||||||||||
large format digital billboards at | ||||||||||||
Mumbai International Airport, internet | ||||||||||||
and traffic monitoring system. | ||||||||||||
d. | Rationale of amalgamation | i. The Merger will create a larger and stronger entity by combining the | ||||||||||
experience, expertise, resources and client base of the two | ||||||||||||
companies and offer a larger bouquet of services in the areas of | ||||||||||||
advertising and promotion with focus on digital media and emerging | ||||||||||||
technologies. The proposed merger shall result in streamlining of | ||||||||||||
operations and cost efficiency and together with the combined | ||||||||||||
clientele | of both | the companies is likelyto result in | accelerated | |||||||||
business growth. | ||||||||||||
ii. The Merger would result in an optimum utilisation of the facilities, | ||||||||||||
reserves,financials, managerial, technological, manpower and | ||||||||||||
otherresources which will be conducive to enhance the operational | ||||||||||||
efficiencies in the Amalgamated Company. | ||||||||||||
iii. The Merged Company would benefit from the complementary skills | |||||||||||||||
of the combined management team, which in turn would enhance | |||||||||||||||
the overall corporate capability, provide focused strategic leadership | |||||||||||||||
and facilitate better supervision of the business. | |||||||||||||||
iv. The Merger will further result in various benefits including: | |||||||||||||||
a. | Achieving economies of scale. | ||||||||||||||
b. | Lesser regulatory / procedural compliance. | ||||||||||||||
c. | Cost saving in fees/ duties payable on statutory and | ||||||||||||||
procedural compliances. | |||||||||||||||
d. | Elimination of duplication of administrative functions | ||||||||||||||
and multiple record-keeping resulting in reduced | |||||||||||||||
expenditure. | |||||||||||||||
The amalgamation is in the interest of both the companies, their | |||||||||||||||
shareholders, creditors and all other stakeholders of the respective | |||||||||||||||
companies and is not prejudicial to the interests of the concerned | |||||||||||||||
shareholders, creditors or the public at large. | |||||||||||||||
e. | In case of cash consideration- | Upon Scheme become effective and in consideration of the Arrangement, | |||||||||||||
amount or otherwise share | the equity shareholders of the Transferor Company will get the equity | ||||||||||||||
exchange ratio | shares of the Transferee Company in accordance with the following ratio: | ||||||||||||||
1 (one) equity share of face value of Rs.2/- (Rupees Two only) each of the | |||||||||||||||
Transferee Company for every 1 (one) equity share of Rs.2 (Rupees Two | |||||||||||||||
only) held in the Transferor Company as on record date. | |||||||||||||||
The Share Exchange Ratio is based on the valuation report issued by | |||||||||||||||
Mr. Nikhil Singhi, Chartered Accountants (IBBI Registration No: | |||||||||||||||
IBBI/RV/06/2019/11089), Registered Valuer, dated June 24, 2022 and the | |||||||||||||||
fairness opinion obtained from Inga Ventures Private Limited, SEBI | |||||||||||||||
Registered Merchant Banker, (Registration number-INM000012698) | |||||||||||||||
dated June 24, 2022 as have been duly considered, approved and | |||||||||||||||
recommended for Board's approval by the Audit Committee and | |||||||||||||||
Committee of Independent Directors, pursuant to which the Board of | |||||||||||||||
Directors of the Company have considered and accorded their approval | |||||||||||||||
for the same. | |||||||||||||||
f. | Brief details of change in the | Post capital reduction and amalgamation, the shareholding pattern of the | |||||||||||||
shareholding of the listed | Transferor and Transferee Company will be as follows: | ||||||||||||||
entity | Transferor Company (Pre Scheme and Post Scheme) | ||||||||||||||
Particulars | No. of | Pre-Scheme | No. of | Post -Scheme | |||||||||||
Shares | Shares | ||||||||||||||
Promoter | 1,01,18,797 | 43.09 % | - | Transferor | Company | ||||||||||
Public | 1,33,64,046 | 56.91 % | - | ceases to | exist post | ||||||||||
Custodian | - | - | - | amalgamation | |||||||||||
Total | 2,34,82,843 | 100 % | - | ||||||||||||
Transferee Company (Pre Scheme and Post Scheme) | |||||||||||||||
Particulars | No. of | Pre-Scheme | No. of | Post -Scheme | |||||||||||
Shares | Amalgamation | Shares* | Amalgamation | ||||||||||||
Promoter | 8,10,41,545 | 100 % | 4,00,85,954 | 75% | |||||||||||
Public | - | - | 1,33,64,046 | 25% | |||||||||||
Custodian | - | - | - | - | |||||||||||
Total | 8,10,41,545 | 100 % | 5,34,50,000 | 100% | |||||||||||
*Share Capital of the Transferee Company will get reduced post Scheme | |||||||||||||||
pursuant to Clause 15 of the Scheme. |
Post listing of the equity shares of the Transferee Company on the Stock | ||||||||||||||||
Exchanges, it shall comply with the requirements of minimum public | ||||||||||||||||
shareholding of at least 25% (twenty-five percent) in the Transferee | ||||||||||||||||
Company in accordance with the extant applicable law or any | ||||||||||||||||
amendments that may be effective on the effective date of the | ||||||||||||||||
Amalgamation. | ||||||||||||||||
2. | Other Restructuring | |||||||||||||||
a. | Details and reasons for | Equity Share | Capital | of | Signpost India Limited (formerly known as | |||||||||||
Restructuring; | Signpost India Private Limited), the Transferee Company will get reduced | |||||||||||||||
from Rs.16,20,83,090 i.e. 8,10,41,545 equity shares of Rs.2/- each to | ||||||||||||||||
Rs. 5,99,34,314 i.e. 2,99,67,157 equity shares of Rs.2/- each and | ||||||||||||||||
consideration will be issuance of 32,50,000 unlisted, unsecured, non- | ||||||||||||||||
convertible, redeemable debentures (NCD) with a face value of Rs. 100 | ||||||||||||||||
each to the respective shareholders of Transferee Company redeemable | ||||||||||||||||
in one year. For the sake of clarity, please note that capital reduction has | ||||||||||||||||
no impact on transferor company and will only impact the Transferee | ||||||||||||||||
Company. | ||||||||||||||||
The present share capital of Transferee Company is large in amount in | ||||||||||||||||
relation to the size of the company. It will be beneficial to create a | ||||||||||||||||
company with share capital in consonance with the size of its operations, | ||||||||||||||||
so that the capital is serviced efficiently. | ||||||||||||||||
b. | Quantitative and/ or | The Share Capital of Transferee Company will get reduced to 2,99,67,157 | ||||||||||||||
qualitative effect of | equity shares of Rs. 2/- | each i.e. Rs.5,99,34,314 by issuing 32,50,000 | ||||||||||||||
Restructuring; | unlisted, unsecured, non-convertible, redeemable debentures (NCD) of | |||||||||||||||
Rs. 100/- each to the respective shareholders of Transferee Company | ||||||||||||||||
redeemable in one year. | ||||||||||||||||
c. | Details of benefit, if any, to the | For the sake of clarity, please note that capital reduction has no impact | ||||||||||||||
promoter/promoter | on Transferor Company and will only impact the Transferee Company. | |||||||||||||||
group/group companies from | ||||||||||||||||
such proposed Restructuring; | There are no such specific benefits to | the | promoter/promoter | |||||||||||||
group/group companies of the Transferee Company from such proposed | ||||||||||||||||
restructuring except to the extent of their respective shareholding in the | ||||||||||||||||
Transferee Company. | ||||||||||||||||
d. | Brief details of change in | Post capital reduction and amalgamation the shareholding pattern of the | ||||||||||||||
Shareholding pattern (if any) | Transferor and Transferee Company will be as follows: | |||||||||||||||
of all entities | Transferor Company (Pre Scheme and Post Scheme) | |||||||||||||||
Particulars | No. | of | Pre-Scheme | No. of | Post -Scheme | |||||||||||
Shares | Shares | |||||||||||||||
Promoter | 1,01,18,797 | 43.09 % | - | Transferor Company | ||||||||||||
Public | 1,33,64,046 | 56.91% | - | ceases to exist post | ||||||||||||
Custodian | - | - | - | amalgamation | ||||||||||||
Total | 2,34,82,843 | 100% | ||||||||||||||
Transferee Company (Pre Scheme and Post Scheme) | ||||||||||||||||
Particulars | No. | of | Pre-Scheme | No. of | Post -Scheme | |||||||||||
Shares | Amalgamation | Shares* | Amalgamation | |||||||||||||
Promoter | 8,10,41,545 | 100 % | 4,00,85,954 | 75% | ||||||||||||
Public | - | - | 1,33,64,046 | 25% | ||||||||||||
Custodian | - | - | - | - | ||||||||||||
Total | 8,10,41,545 | 100 % | 5,34,50,000 | 100% | ||||||||||||
*Share Capital of the Transferee Company will get reduced pursuant to | ||||||||||||||||
Clause 15 of the Scheme of Arrangement. | ||||||||||||||||
Post listing of the equity shares of the Transferee Company on the Stock | ||||||||||||||||
Exchanges, it shall comply with the requirements of minimum public |
shareholding of at least 25% (twenty-five percent) in the Transferee | ||
Company in accordance with the extant applicable law or any | ||
amendments that may be effective on the effective date of the | ||
Amalgamation. | ||
3. | Whether listing would be | The Transferee Company shall apply for listing and trading of its equity |
sought for the Transferee | shares on BSE Ltd and National Stock Exchange of India Ltd. | |
Company |
Yours faithfully,
For Pressman Advertising Limited
Paulami Mukherjee
Company Secretary & Compliance Officer
Membership No. A49780
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Pressman Advertising Ltd. published this content on 24 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 June 2022 11:55:05 UTC.