Zee TV calls for merchant banker proposals to help it forge a
global strategic partnership
(Posted on 23 May, 8:00 pm)
After failing with two alliances (Star TV and Asianet) and
struggling to forge a third (for Siticable for the past year),
Zee Telefilms chairman Subhash Chandra announced to a well-packed
press conference in Mumbai that his company had decided to induct
a strategic partner, preferably an international media major.
Nothing more was revealed despite several attempts by the journos
to put forth probing questions.
He said that the company had taken a decision to invite proposals
from leading international investment/merchant bankers to secure
this partnership.
"The need is driven by market trends - it's driven by the
fact partnerships that provide access to capital and technology
with access to the global market for programming and syndication
can accelerate the process enhancing value creation by enlarging
the scope of operating markets and consumers," said Chandra.
Zee Telefilms Corporate head and CEO R.K. Singh added that the
company would be open to an alliance with even Sony and Star,
if the offer was right. "There are no friends or foes in
business. As long as we can enhance shareholder value, we would
be open to the strategic partnership."
Chandra added that 60 per cent of ZTL's equity was with the
promoters, 19 per cent with Indian financial institutions, 7 per
cent with Indian financial institutions, 4 per cent with Star
TV and the rest with individuals. "We would be looking for
management skills in the partner," said Chandra.
Among the investment bankers who will be seeking to get the mandate
include DSP Merrill Lynch whose managers were seen in Zee TV's
offices earlier this week.
Chandra expects the partner to be brought in in the next three
to four months.
The press conference was marked by skepticism from journos who
have been stung in the past by the run of pie-in-the-sky announcements
from the Zee Telefilms stable last year which helped take its
share price to stratospheric heights. The ambitious announcements
had to later be scaled down to more realistic levels later.
Will the markets react similarly? Or will they buy into Chandra's
current announcement? Watch this space.
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