| MUMBAI:
Zee Entertainment Enterprises Limited (Zeel) plans to hive off Hindi general entertainment
channel Zee Next to its wholly-owed subsidiary Asia Today Limited. Zeel
is in talks to rope in a foreign strategic investor for Zee Next and proposed
kids programming. "We
intend to move Zee Next to Asia Today Ltd. The plan is to get a foreign investor
in Zee Next and kids programming that we will be stepping into," says a source
in the company.
ATL's
holding initially will be 45 per cent in the company that will hold Zee Next and
kids programming while the investing partner will own the rest. ATL's stake will
go up to 55-60 per cent in five years. "ATL
will invest in convertible debentures within five-year period to be issued by
Zee Next. The shareholding of ATL for the purpose of consolidation, prior to conversion
of debenture would be 45 per cent and post conversion of CD within 5 year would
go up to 55 – 60 per cent," the source adds. Hong
Kong-based ATL will invest Rs 1 billion in Zee Next over a three-year period while
the partner will put in Rs 4 billion. "We
are looking at an investor who is willing to put 80 per cent funds. ATL will put
in 20 per cent but the shareholding will be disproportionate to the investments,"
the source says. Zeel
is hiving off Zee Next as it doesn't want to capture the startup losses of the
newly-launched Hindi general entertainment channel. "This is also why we
are structuring the holding in such a way (45 per cent) that it doesn't get reflected
in the consolidated results," the source explains. Zee
has so far not stepped into kids programming. The first stage of the plan is to
kick off kids content, grow it to a scale, and then consider launching a kids
channel. "We have presence in all segments of the entertainment business
except in the kids space," the source adds. | 
