B4U Television Network plans to takeover its UK-based parent LMB Holdings ahead of its proposed initial public offering (IPO) next year. The reverse merger will lead to the integration of B4U's worldwide operations with the Indian company. Earlier B4U Television Network had taken over the assets and liabilities of B4U Multimedia.
The company has scaled down the proposed size of the IPO from Rs 200 crore to Rs 100 crore as e-commerce and broadband expansion plans have been dropped. The movie production plans have also been scaled down.
LMB Holdings wanted to raise funds for its television business in India through an IPO. It identified B4U Multimedia as the company to go for a listing, as B4U Television Network did not have a three-year track record. VIP Enterprise, which was run by Mr. Shah, was renamed B4U Multimedia.
The three partners-Mr. Lulla, Mr. Mittal and Mr. Binani-hoped to synergise their overseas operations and build a media empire in India with the help of Mr. Shah who owned a large number of movie rights.
B4U Television Network, which was only a content supplier to B4U's international channels, has acquired the movie library from B4U Multimedia. The company has a library of 700 movies in India and has recently relaunched B4U Entertainment as B4U Movies. UK-based Eros, the buying agent for B4U Television Network, has telecast rights to 1,600 movies for the overseas market.