| MUMBAI:
Network18 Group has to put in another $25 million as part of its commitment to
the joint venture company Viacom18 where it shares equal stake with partner Viacom. The
Group has already put in $65.5 million including an installment of $15 million.
The payment of the balance amount will be made in two installments of $15 million
and $10 million due in November 2009 and 2010.
"Viacom
will not contribute anything in this $90.5 million. Any additional investment
that the joint venture company makes will be contributed equally by both the partners,"
a source in the company says. Viacom18
has launched Hindi general entertainment channel Colors and runs the Viacom channels
in India. TV18
Mauritius's wholly owned subsidiary BK Holdings invested $50.5 million in Viacom18
on 6 November 2007 and a further $15 million has been paid as the first of three
installments last year. The
investment of $ 50.5 million by BK Holdings has been funded in form of debt from
an overseas bank for which founder-promoter Raghav Bahl has provided a personal
guarantee and a corporate guarantee has been provided by TV18 and Network18. Pursuant
to the subscription of 22,76,694 equity shares in Viacom18 (aggregating to 6.60
per cent of the paid up equity capital) on 23 September 2008 at a price of Rs
131.77 per share and the joinder agreement, ibn18 has agreed to become party to
the shareholders agreement dated 22 May 2007 entered into among BK Holdings, MTV
Asia Ventures (India) Pte Ltd, Network18 and Viacom18 which sets out the respective
rights and obligations concerning their participation in Viacom18. The
payment of $40 million has been secured by an obligation on Network18 to make
the said investment in the event of a failure by BK Holdings and a corporate guarantee
from TV18 to secure the performance of Network18. | 
