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.
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.
had lent Rs 500 million as debt to ABCL and this will get converted
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.
the Foreign Investment Promotion Board (FIPB) rejected ABCLs
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.
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.
the merger, Srini Raju-promoted iLabs Venture Capital and Saif will
hold around 85 per cent in ABCL.
operates six news channels including TV9 AP (Telugu), TV1, TV9 Karnataka,
News9 English (Bangalore), TV9 Gujarat, and TV9 Mumbai (Hindi).
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.
has made an equity investment of Rs 800 million into the business
and has taken a debt of Rs 500 million from Saif.
company has turned around and is operationally making a profit.
In FY11, 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.
looks at Saif ahead of IPO plans; to seek FIPB nod again