TV9 scouts for investors, needs Rs 4 bn to expand

MUMBAI: Hyderabad-based Associated Broadcasting Company Ltd (ABCL), which runs a clutch of regional news channels, has mandated Edelweiss Capital to find an investor that also includes complete exit from the business if the valuation is right.

ABCL has a fund requirement of Rs 4 billion to launch news channels in Tamil for the Chennai market, Oriya and Hindi for the National Capital Region (NCR). The plan is to expand its fleet of channels to nine.

?We are looking at an investor to expand our operations. We are prepared to dilute and may even exit if we get the right price,? a source familiar with the development said.

Is a national media house buying out ABCL? ?We have given the mandate to Edelweiss Capital. No discussion has happened with the ABCL management and any media house,? the source clarified.

ABCL is in the process of giving 14.5 per cent stake to private equity fund Saif III Mauritius Company, a subsidiary of Tokyo-based Softbank Corp. This will follow a merger between iVision Media, the India outfit of Saif, and ABCL.

iVision had lent Rs 500 million as debt to ABCL and this will get converted into equity.

?Saif will hold around 14.5 per cent equity, valuing ABCL at Rs 3.5 billion. We are approaching the high court to approve the merger between iVision Media India and ABCL,? the source said. iVision Media India was set up to start a video news wire agency, but Saif shelved its plans and the company is dormant.

Earlier, the Foreign Investment Promotion Board (FIPB) rejected ABCL?s proposal to give stake to ABCL. ?The FIPB has asked us to get the high court approval for a merger between ABCL and iVision. Then they will consider our proposal of converting the debt into equity,? the source said.

In its earlier application, ABCL had sought merger of iVision with itself. It would have issued and allotted compulsory convertible preference shares on the date of completion of the merger.

Post the merger, Srini Raju-promoted iLabs Venture Capital and Saif will hold around 85 per cent in ABCL.

ABCL operates six news channels including TV9 AP (Telugu), TV1, TV9 Karnataka, News9 English (Bangalore), TV9 Gujarat, and TV9 Mumbai (Hindi).

For TV9 Karnataka and News9 English, ABCL has given 10 per cent stake to a local partner while in Gujarat it has parted with 5 per cent. In all other operations, it holds the entire stake, the source said.

ABCL has made an equity investment of Rs 800 million into the business and has taken a debt of Rs 500 million from Saif.

The company has turned around and is operationally making a profit. In FY?11, ABCL clocked a revenue of Rs 1.08 billion. The company has crossed this figure in the first nine months of this fiscal, the source said.

Also Read:

TV9 looks at Saif ahead of IPO plans; to seek FIPB nod again

Latest Reads
Watch the World Television Premiere of Satyameva Jayate on 15th December only on Zee Cinema

We all have seen corruption and apathy in the government and police force etc.

Television TV Channels Movie Channels
Zeel channels most watched Hindi channels across genres

Two Hindi GECs from the Zee Entertainment Enterprises Ltd (Zeel) stable – free-to-air or FTA Zee Anmol and flagship pay TV channel Zee TV were once again the second and third most watched channels across genres in 2018 in week 48 (Saturday, 24 November 2018 to Friday, 30 November 2018).

Television TV Channels Viewership
Our shows will empower people to drive electoral discourse: Network18's Priyanka Kaul

The news genre has entered its peak time – election season. All news channels including Hindi, English and regional have started their election-based programming from the exit polls that took place on 7 December 2018. Election coverage is like the bread and butter for news channels since this is...

Television TV Channels News Broadcasting
Zee Kannada to launch a first-of-its-kind horror thriller fiction show – Aatmabandhana

Zee Kannada, every Kannadiga household’s hub of entertainment, further strengthens its fiction band with innovative content post the successful launch of Paaru.

Television TV Channels Regional
Diljit Dosanjh’s ‘Pagal’ & ‘Putt Jatt Da’ rakes in over Five Million Hits on Gaana each

Punjabi sensation Diljit Dosanjh’s newly released tracks ‘Pagal’ & ‘Putt Jatt Da’ have smashed charts on India’s largest music streaming app – GAANA with over five million hits within less than a month.

Television TV Channels Music and Youth
How Hindi news channels perform on counting day

News viewership is event-driven – either scheduled or unscheduled. Elections are certainly the most important of all special or scheduled events.

Television TV Channels Viewership
Khelo India Youth Games, Maharashtra 2019 is Bigger and Better!

Building on the roaring success of the inaugural edition of the Khelo India School Games, Ministry of Youth Affairs and Sports along with Star Sports kick started the countdown to Khelo India Youth Games, Maharashtra 2019 with an appeal to encourage India to play more- with the evocative ‘#...

Television TV Channels Sports
IndianOil to fuel Tata Open Maharashtra

Organisers of Tata Open Maharashtra today announced Indian Oil Corporation Ltd. coming on board as a valued partner for the 2nd edition of Tata Open Maharashtra to be played at the Mhalunge Balewadi Stadium, Pune.

Television TV Channels News Broadcasting
Times Internet announces elevation of Puneet Gupt as its COO

India’s leading digital products company, Times Internet announced the elevation of Puneet Gupt as the COO of Times Internet,with immediate effect.

Television TV Channels People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories