MUMBAI: Telephoto Entertainments Ltd is changing its business plan. Television serial production will be out and taking its place will be multiplex business, according to Telephoto company secretary S Ganesan.

The first step in this direction is the entire buy out of Chennai-based AGS Properties Development India Pvt Ltd. which is engaged in the business of multiplexes. Telephoto board has given the nod to buy out 100 per cent of the equity share capital of AGS.

Telephoto will also provide a debt of Rs 80 million to AGS after the acquisition is complete. This will be outside the acquisition price which Telephoto has agreed to pay, Ganesan said. "AGS will become a wholly owned subsidiary of Telephoto," he added.

AGS is setting up a five-screen multiplex in Chennai at an estimated investment of Rs 120 million. The company has already taken a term loan of Rs 90 million from a nationalised bank. The balance Rs 30 million will be provided as debt by Telephoto, Ganesan said.

AGS has also plans to develop a seven-screen multiplex for which the project cost is still to be worked out. Telephoto will part-finance this project as well in the form of loans and advances.

Telephoto, a production house promoted by Revathy and Suresh Menon, was acquired last year by SSI Ltd through a preferential allotment of equity shares and warrants with option to convert them into equity shares. Currently, SSI holds 54 per cent while the founder promoters of Telephoto have 18 per cent stake in the company. "SSI's holding will go up to around 72 per cent after conversion of warrants," said Ganesan.

Telephoto had produced movies and serials like Nirangal (SunTV), Anthariyalu (dubbed, Gemini TV) and Boom Boom Shaka Laka (Sun TV, Gemini TV, Surya TV).