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MUMBAI: It's official now. Though there was no mention of
the former Star India CEO's name anywhere, Peter Mukerjea's
signature was all over the announcement of plans to launch
a new television network through two companies - INX Media
Pvt Ltd and INX News Pvt Ltd.
The full bouquet of channels will include a Hindi entertainment
channel, an English news channel, various entertainment channels
in regional languages, a music channel and city-specific channels.
INX Group promoter Indrani Mukerjea will be chairperson of
the venture.
The Hindi general entertainment channel, the music channel
and the English news channel will be launched by the last
quarter of the year while the other channels will be rolled
out over the next two years. "We expect to be free-to-air
for both channels in the foreseeable future", Indrani
Mukerjea stated.
Funding for the entertainment company INX Media has come
in from Temasek Holdings via Dunearn Investments, New Silk
Route, New Vernon, Kotak and SREI Group. The news company,
INX News, will be 26 per cent owned by the entertainment company
and, in accordance with government regulations, by a single
Indian entity drawn from the INX Group.
No single fund will own more than 25 per cent of the entertainment
channel, it has been clarified. A portion of the equity will
be kept aside as sweat equity for key employees both in the
entertainment and the news companies. The two companies have
already applied for necessary permissions.
The release was also categorical in its denial of Reliance
Industries chairman Mukesh Ambani having a direct link to
Mukerjea's broadcast venture. The company stated that neither
Ambani nor any of the companies in his group "has any
investment at all in the entertainment or the news companies
in the form of either equity or debt."
Heading INX News as CEO and editorial head is Vir Sanghvi.
For print purposes, his association with HT Media will continue
and his columns will continue to appear in the Hindustan Times
and newly launched business paper Mint.
Kotak Investment Bank is the exclusive adviser to the INX
Group on this transaction. Amarchand & Mangaldas &
Suresh A Shroff & Co. are the legal advisers to the group.
The investors in INX Media Pvt. Ltd which will have the entertainment
and the music channels include Dunearn Investments, a wholly
owned subsidiary of Temasek Holdings, NSR PE, a fund advised
by New Silk Route Partners, New Vernon Private Equity, SREI,
Kotak Mahindra Capital Company and Kotak Private Equity (part
of the Kotak group) and IM Media Pvt Ltd.
The structure of INX News Pvt. Ltd, which will own the news
channels, is in accordance with Government of India regulations
which specify that a single Indian entity must own 51 per
cent of the equity and that foreign shareholding cannot exceed
26 per cent.
The entertainment company will own 26 per cent of the news
company. IM Media Pvt. Ltd. will own the majority shareholding
as the Indian entity. IM Media Pvt Ltd is a company owned
by Indrani Mukerjea and is part of the INX group. It will
fund its investments in this venture through interest-bearing
debt.
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