Cable Video (India) Limited has been merged with the parent company, CVO Holdings, as part of Hinduja Group’s strategy to reduce the number of subsidiaries under Hinduja TMT. The swap ratio for the merger is 1:1.
CVO Holdings recently bought out Oxygen, an interactive music channel. The plan is to launch a few thematic channels, which would be offered as a package with Internet through a group company IndusInd Media & Communications.
The plan to raise funds through an IPO has also been deferred. The process of renaming the merged entity is on.
The Hindujas earlier owned a 51 per cent stake in CVIL, while the balance was held by the promoters of video cassette distribution companies Bombino, Indus and Time. CVIL ran the CVO cable movies channel and owned the brand Cable Master, which licensed movies to cable operators.
Swayed by the convergence economy, the Hindujas changed their plans for CVIL. Hinduja TMT took a 51 per cent stake in CVIL via CVO Holdings. The balance 49 per cent was with the Time, Indus and Bombino promoters.
In the merged entity, the shareholding pattern will remain the same. Hinduja TMT will continue to hold 51 per cent and the balance will be with the other partners. The focus of CVIL will be on increasing ad and subscription revenues from the cable movie channel, CVO. The revenues for the CVO channel were affected in the last financial year.