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MUMBAI:
Network18 will be refiling with the Securities and Exchange
Board of India (Sebi) soon to make provisions for raising
Rs 2 billion through a rights issue.
The
need for submitting a revised document before the Sebi comes
in the wake of the joint venture deal TV18 Group stitched
with global media giant Viacom.
"When
we had filed for the rights issue, our purpose for raising
the amount was different. The whole purpose has now changed
because of the Viacom deal. We will be filing with the Sebi
afresh," says a source in the company.
Following
the Viacom deal, Studio18 which is housed under Network18
is exiting from the movie projects. TV18 Group is planning
to revive its television content business under the Studio18
arm.
"The
money will be also used for repayment of high cost debt and
investment in media opportunities," the source adds.
The
50:50 Viacom-TV18 Group joint venture company will be launching,
among other products, a Hindi general entertainment channel.
Studio18 could, to start with, be producing content for this
channel.
Meanwhile,
Global Broadcast News (GBN) is awaiting FIPB (foreign investment
promotion board) approval and has plans to raise up to $200
million by way of international offerings. TV18 Group is making
the investment in the JV company through GBN.
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