Television

Zee hikes stake in Asianet to 61 per cent

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Zee Telefilms' Limited (ZTL) has decided to hike its stake in Asianet Communications to 61 per cent, according to Business Standard. The board has passed a resolution to this effect on 14 April. The company had earlier decided to acquire 51 per cent stake in the south Indian television powerhouse.

In consideration, ZTL will pay Rs 1 billion to Asianet Communications' promoters for a 'non-compete' clause under which no promoter will be allowed to start any competing business. The 61 per cent stake would have a consideration of ZTL stocks worth ARs 2.55 billion.

Asianet promoter Raji Menon will come on ZTL board while Subhash Chandra will be on the board of Asianet Communications.

The newest acquisition by ZTL will give the media powerhouse a greater stand in the southern market where it lacked much presence and also access to Asianet's cable networks in Kerla. Besides this, it will have access Asianet's library of 4,000 hours of original programming and 1,200 movie titles which Zee will use for international broadcast.

ZTL will now claim a presence in all 22 million C&S homes.

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