Sahara to enter cable TV biz via Digicable; Ashmore exits

MUMBAI: Sahara Group is acquiring a majority stake in Digicable Network (India) that will mark the Lucknow-based financial services-to-real estate-to-media conglomerate‘s entry into the cable TV business ahead of the government‘s digitisation mandate.

Ashmore will exit from Digicable after investing in the company in 2007. The UK-based global private equity fund held equal stake of 49 per cent in Digicable and Broadband Pacenet, both promoted by Jagjit Kohli and Yogesh Shah.

Digicable was 51 per cent owned by Broadband Pacenet, the Mumbai-based broadband services provider, and 49 per cent by Ashmore. This in effect gave Ashmore around 74 per cent stake in Digicable, the multi-system operator (MSO) with a pan India footprint.

Highly placed sources have confirmed the deal to

The transaction will be a two-way process. Steller Interactive Media Pvt Ltd, the parent company through which Kohli and Shah hold their stakes in Digicable and Broadband Pacenet, will first buyout Ashmore with the support of Sahara. Steller Interactive Media, after taking full ownership of Digicable and Ashmore, will then sell majority stake to Sahara.

Post transaction, Sahara is likely to hold 74 per cent stake in both the companies while the remaining will be with Kohli and Shah, sources said.

Sources could not confirm the exact amount Ashmore took home to exit from its cable and broadband investments in India. The private equity firm had poured in around $240 million into the company and was looking to exit from its sour investments.

Sahara had shown nascent interest in cable and IPTV business years back but did not venture into it due to the revenue leakages from the last mile that was owned by the local cable operators. The analogue cable market was also highly fragmented. Sahara’s interest now stems from the mandate to the cable TV industry to switch over nationally from analogue to digital by December 2014, beginning with the four metros over the next three months.

Sahara Group also owns a broadcasting business. Sahara One Media and Entertainment Ltd operates in the motion pictures and Television arena. The company runs three channels – Sahara One, Filmy and Firangi.
Digicable was started in 2007 by Kohli, along with his business partner Yogesh Shah, soon after he quit Zee Group‘s Wire & Wireless India Ltd (WWIL). He had then roped in Ashmore to invest in the business.

Also read:

UK private equity firm Ashmore takes 49% in Jagjit Kohli‘s new cable venture

Latest Reads
Highly-beneficial interactions take place at Broadcast India '16

The 26th Broadcast India Show concluded over the weekend in Mumbai, and was easily the most exciting Broadcast India Show yet. With thousands of eager, high-quality trade visitors swarming the show floor, a sentiment signalling highly-beneficial exchanges and interactions echoed through the halls...

Technology Software Applications
India, China to propel APAC, beat CAS Europe market share

APAC is expected to overtake the market share of Europe in future due to an increasing demand for digital TV set-up boxes in countries such as China and India. North America and Europe dominated the global CAS market in 2015. APAC region is estimated to mark a growth rate of 12.0 per cent CAGR...

Technology Hardware Set-top Boxes
India lucrative market for 4K UHD STBs: Grand View Research

Here’s a view on the demand for 4K or ultra high definition (UHD) set-top boxes (STBs) in India.

Technology Hardware Set-top Boxes
Infor appoints Dass as south Asian subcontinent V-P

Infor, a leading provider of business applications specialized by industry and built for the cloud, has appointed Ashish Dass as the vice president and managing director for the south Asian subcontinent. Infor software helps eliminate the need for costly customization through embedded deep...

Technology Software Applications
Siti & DishTV opt for Conax conditional access

The Essel group has been using Conax’s tech for sometime now for its Siti Network (earlier known as Siti Cable). Now the group has extended that partnership for another product for both Siti Network and DTH operator Dish TV India. This time it is for the cardless set top boxes that the two are...

Technology Hardware Set-top Boxes
Imagine Communications extends functionality of Selenio One unified transcoding platform to OTT

MUMBAI: Imagine Communications, empowering the media and entertainment industry through transformative innovation, today introduced a high-density adaptive bitrate (ABR) transcoding product built on Selenio One™, the company’s software-defined linear transcoding platform. Selenio One is designed...

Technology Hardware Components
DJI Makes Your Smartphone Smarter with the New Osmo Mobile

DJI, the world leader in creative camera technology, Thursday launched the Osmo Mobile, an extension for smartphones that turns them into intelligent, precision camera systems.

Technology Hardware Components
Prime Focus Tech gets funding from PE firm Ambit Pragma

MUMBAI: Prime Focus Technologies (PFT) – the technology offshoot of media services company Prime Focus - informed the Bombay stock exchange today that it had received its first round of funding from growth capital private equity fund Ambit Pragma.

Technology Software Applications
Three new products developed by C-DOT launched on its Foundation Day

Communications Minister Manoj Sinha today expressed the hope that 100,000 Gram Panchayats (GPs) will be connected through Optical Fibre Cable (OFC) by March next to set up a network infrastructure to serve the rural masses.

Technology Hardware Distribution

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories