| MUMBAI:
Astro's South Asia Multimedia Technologies Ltd (SAMTL) will infuse between Rs
750 million to Rs 1 billion into Sun TV Network's radio subsidiary company South
Asia FM Ltd (SAFL) where it has expressed intent to up its stake from 6.98 per
cent to 20 per cent. The
follow-up to this fund inflow will be a capital restructuring in SAFL. As reported
earlier by Indiantelevision.com, Sun TV's stake would likely fall by five per
cent to 60 per cent. "SAMTL
will pump in between Rs 750 million to Rs 1 billion for the stake hike,"
says a source in the company. Sun
TV's two FM radio subsidiaries, SAFL and Kal Radio Ltd, have a total debt of Rs
2 billion. "We may decide to retire part of this debt. About Rs 1.3 billion
has come in from the parent company," says the source. Sun's
radio businesses will also need support for operational expenses. The share of
loss to Sun TV from the radio business is Rs 687.9 million for the financial year
ended 31 March 2009. "We expect to lower the loss to Rs 400-450 million this
fiscal," the source adds. SAFL
and Kal Radio posted a combined turnover of Rs 331.7 million for FY'09. Sun expects
this to increase to Rs 450-500 million in FY'10. "Kal
Radio should turn Ebita positive this fiscal. But combined, the radio business
will still be under losses," the source says. Also
Read: Astro
to up stake in Sun TV's radio subsidiary by 13% Astro
to pick up stake in Sun's radio subsidiary | 
