DQ Entertainment raises up to $50 million for content development

MUMBAI: DQ Entertainment (International) has announced that its holding company and promoter DQ Entertainment (Mauritius) has executed the documents to raise funds up to US$50 million. The funds will be raised by way of semi or secured convertible bonds from OL Master, a private credit fund managed by OCP Asia (Hong Kong).

In an announcement made to the BSE, the company has said that the funds can be drawn down in two tranches, the first of which is for US$35 million and will be drawn down immediately and the second tranche of US$15 million can be drawn down at the option of the investor within 12 months thereof.

The net proceeds from the issue of the bonds will   be used to fund the development of more than 20 owned-IP and co-production project   currently in the pipeline for production over the next two years, for the repayment of certain debts amounting to approximately US$7.2 1 million (Rs 445.1 million) and for general  working capital  purpose.

DQ Entertainment chairman and CEO Tapaas Chakravarti said, “We are delighted to partner with OCP Asia and are confident that this association will help us to realise our mission for DQE.   The validation of our  business  model  by the high acumen  OCP team  further  strengthens our commitment  to  produce  and  distribute  world  class  content  across  territories and  grow  our audiences with high quality IP creation."

OCP  Asia  (Hong  Koug) co-founding  partner Teall   Edds added, "We   have  been impressed  with  DQE's exciting pipeline  and its capabilities in producing world class  content,  its ability  to work with broadcasters from around  the world in bringing ideas  to the screen  and  its 360-degree monetisation approach to generating  returns  on IP.  We look forward to our close partnership with DQE.”

It can be noted that the board of directors of DQE had been exploring various options to secure the necessary funding for the group’s pipeline projects, the bulk of which are children/family oriented animation series for TV and digital distribution. “This has included discussions with a number of investors and after considerable deliberation and effort, DQE has concluded that the issue of the bonds is the best option available to the group to secure the finance it needs and is in the best interests of shareholders  as a whole. The board believes there is an opportunity to grow DQE’s business through the development and exploitation of its own IP and the issue of the bonds provides the finance to capitalise on this,” the statement to the BSE reads.

DQE has a production order book worth approximately US$ 63 million (Rs 3,820 million) in terms of revenue to the group. Some of the projects currently in production include ‘Robin Hood’, ‘Peter Pan season 2’, ‘Lassie’, ‘Miles from Tomorrow  Land’, ‘Popples’ and  ‘Seven Dwarfs &  Me.’ Production of many new IPs such as ‘5 & IT’, ‘Yonagunis and Leo Galilei’ will  commence  soon. The company had recently also signed on a co-production project called ‘Pio the Chick’ with Rai, Italy and is engaged in discussions for more such projects.  

DQE's distribution and licensing division has concluded 24 deals in the current financial year. In addition, a number of broadcast deals for the group's IP, including Jungle Book, Peter Pan. Iron Man and Robin Hood, have been concluded with global broadcasters such as Rai Cinema (Italy), DEA (Italy), Viacom I8 (India) and  Univision (USA & Puerto Rico).  DQE expects to be able to grow its licening and merchandising revenue through its 360-degree monetisation strategy for all its existing and new IPs going forward.

Major Terms of the Bonds

The bonds carry a cash coupon rate of 6.5 per cent per annum payable semi-annually from the closing date up to the maturity date. The bonds will have a maturity period of five years from the closing date (the "Maturity Date”).

Outstanding bonds will be redeemed on the maturity date at  a redemption price which would yield an internal rate of  return  ("IRR”)  equal  to 15  per cent  per annum  (the 'Redemption Price’).   In addition, the bond holders can redeem the bond at the Redemption Price after a period of 36 months after the closing date.

The bonds will   be issued to the Investor and are freely transferrable, in whole or in part, to any person (with the holders of the bonds from time to time being collectively the "Bond holders'').

“The bond can be converted into ordinary shares of DQE Mauritius. The conversion of the full US $50 million of bonds would currently equate to 56.5 per cent of DQE Mauritius on a fully diluted basis,” said the statement.

Latest Reads
Comedy Central sets pace for ultimate celebration with over 100 hours of non-stop FRIENDS ultra marathon for its 6th birthday

Birthdays and New Years are great occasions to make resolutions for participating in marathons. However, this is one marathon which calls for hanging up your running shoes and grabbing the best spot in front of the telly with a bowl of munchies to keep you going because, for the first time ever in...

Television TV Channels English Entertainment
U Sports launches India's first ever Multi-Platform Multi-Game E-Sports Championship - U Cypher with MTV

The Indian E-Sports scenario is all set for a major revamp as U Sports, one of India’s biggest sports business companies in association with India’s No. 1 Youth Brand, MTV, announces the premiere of their all new month-long championship, U Cypher with MTV. Premiering today, on 19th January, the...

Television TV Channels Sports
TV ownership increased by 14% in 2017: IRS

After a gap of four years, the Indian Readership Survey (IRS), which documents the growth of the media industry, has been released for 2017. The survey methodology was criticised in 2014 and, therefore, was halted for an upgrade. This time, the sample size has been increased by 34 per cent to 3.2...

Television TV Channels Viewership
CNN-News18 launches 'If I Were FM Challenge'

As part of its Budget programming, CNN-News18 is launching the ‘If I were FM Challenge’. The campaign will encourage viewers to contribute their suggestions for the Union Budget. The channel will run an extensive on-air campaign to promote the same.

Television TV Channels News Broadcasting
BBC World News to Broadcast 'China's Chat Girls'

Lele Tao is an internet superstar in China’s $3 billion dollar ‘live streaming’ industry. With more than a million fans she can earn thousands of dollars a day singing, dancing, flirting, or often just chatting into her webcam. Fans buy her virtual gifts which she redeems for cash. In return she...

Television TV Channels News Broadcasting
PKL season 6 and 7 dates announced

The second most watched domestic league in India, Vivo Pro Kabaddi League owned by Mashal Sports and Star India announced the dates of sixth and seventh season.

Television TV Channels Sports
Star Bharat leads Hindi GEC (U+R) in week 2 of BARC ratings

MUMBAI: Star Bharat emerged as the leader in the Hindi GEC (U+R) genre dethroning Zee Anmol according to Broadcast Audience Research Council (BARC) all India data for week 2 of 2018.

Television TV Channels Viewership
BARC week 2: Aaj Tak leads Hindi News in all three markets

MUMBAI: Republic TV continues its leading streak in the second week of the year as well in BARC All India ratings. News Nation stays in the top five chart in week 2 of 2018 in Hindi News Rural market. Aaj Tak tops the chart again in Hindi News Urban market.

Television TV Channels Viewership
Dsport acquires India rights of tri-nation tournament in SL

Discovery’s sports channel Dsport has acquired the exclusive India broadcast rights of Nidahas Trophy 2018, a tri-nation international T20 tournament involving India, Sri Lanka and Bangladesh. The transaction was facilitated by Lagardère Sports, the global marketing consultant of Sri Lanka Cricket...

Television TV Channels Sports

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories