MUMBAI: Pursuing a vertically integrated model, Eros International Plc is planning to take full control of B4U Television Network by acquiring the remaining 76 per cent stake for a cash and share consideration of $53.1 million (Rs 2.8 billion).

Eros already owns 24 per cent in B4U, the global Bollywood network that runs two channels. B4U Music and B4U Movies are available in more than 100 countries, including India, the UK, the US, Canada and countries in the Middle East and Africa.

Eros anticipates ?entering into a definitive agreement on or after 24 April to acquire control of B4U. The TV broadcast company is currently controlled by steel magnate Lakshmi Mittal and London-based industrialist Gokul Binani.

Eros International chairman and CEO Kishore Lulla said, ?We are delighted to announce our anticipated acquisition of the remaining 76 per cent of B4U. We expect that B4U?s global network, as well as its film and music content, will complement Eros? existing product offering."

The share payments may alternatively be made in cash at Eros? option.

Eros saidTuesday that the aggregate purchase price will consist of:

• B4U?s cash on hand net of all B4U?s outstanding bank loans and overdrafts (a net amount of up to $19.3 million) to be paid in cash on closing;
• Approximately $5.7 million in Eros A ordinary shares upon the earlier of 14 business days from the listing of Eros A ordinary shares on the NYSE or 30 days after closing (or, if the listing of Eros A ordinary shares on the NYSE occurs 14 business days prior to closing, at closing);
• Approximately $19.3 million (less the consideration in cash paid at closing) in cash and approximately $10.4 million in our A ordinary shares or cash, at the option of Eros, on the first anniversary of the closing of the acquisition; and
• Approximately $7.3 million in cash and approximately $10.4 million in our A ordinary shares or cash, at the option of Eros, on the second anniversary of the closing of the acquisition.
   

The deadline to close the transaction is approximately 120 days from the date of the definitive agreement unless mutually agreed to be extended.

Eros said that though it holds approximately 24 per cent of B4U, it has not exercised significant influence over the company.

Eros cautioned that the pending acquisition of B4U remains subject to customary closing conditions, including the receipt of necessary regulatory approvals, and may not occur on the expected terms or at all.

For the financial year ended 31 March 2011, B4U?s net income was $2.5 million and net assets were $28.7 million. B4U generates the majority of its revenues internationally, predominantly through fees earned from being a part of a cable or satellite service provider?s subscription package, and within India from advertising. Eros said that the company expects B4U to benefit from expanding international coverage and growing television advertising spend in India.

MUMBAI: 9X Media, which operates Bollywood music channel 9XM, is gearing up to launch another Hindi music channel, 9X Jalwa, on 25 February.

9X Jalwa, touted as a ?timeless Bollywood music channel?, will follow the same business model of playing back-to-back Bollywood music with humour-led character?s interstitials and trivia-based slate-shows.

The new channel, with a tagline Koi Shaq, will air songs from the mid-sixties till 2000.

?We are launching 9X Jalwa on 25 February. The channel will play timeless hit music with melodies from 1965 till 2000. Competitors are airing either half-hour or one-hour slots. Our viewers will get a 24-hour channel to consume timeless Bollywood hits. We see a tremendous opportunity here,? 9X Media Sr VP and head ? new business Punit Pandey told Indiantelevision.com.

With the addition of 9X Jalwa, the genre will have 20 players fighting for an ad pie between Rs 3.5-4 billion yearly and a share of 200-240 GRPs (gross rating points) on a per week basis.

9X Jalwa, which will be tapping 25+ age group audiences in the Hindi speaking markets, will compete mainly against Adhikari Brothers? channel Mastiii, B4U Music and Sony?s Mix.

?With the new channel, 9X Media might be trying to capture more market share which channels like Mastiii, B4U and Mix are eating into by playing retro music. As of now, 9XM only plays new Bollywood music, while other pure play music channels also have significant amount of old songs,? a senior media executive who did not want his name to be revealed said.

Mastiii plays 50 per cent of retro music, while Mix also has late evening time bands dedicated to the old songs.

Some of the shows on 9X Jalwa will include Halkat Sawal, Kassette Kahaniyan and Bolly Brands. These shows will provide viewers with anecdotes from Bollywood?s golden and timeless era.

The channel will also have special bands dedicated to various moods of music. Some of the bands on 9X Jalwa include Melody Zindabad, Dil Se and Blockbuster Beats.

9X Media Sr VP and head of programming Amar Tidke said, ?We have handpicked over 2000 songs for airing on the channel initially. Viewers will relive the golden era of Bollywood melodies on 9X Jalwa. You will have to see it to believe it.?

9X Jalwa will be an encrypted channel with a free-to-air window and in first phase of launch, will be available on cable and satellite homes in India. Similar to other channels in the 9X Media bouquet, 9X Jalwa will also have a live streaming facility through its website ? www.9xjalwa.in.

9X Media recently launched Punjabi music channel 9X Tashan and Marathi music channel 9X Jhakaas.