Zee Telefilms Ltd (ZTL) will make a open offer to the shareholders of ETC Networks Ltd to acquire up to 20 per cent stake (23.40 lakh shares) at Rs 31.52 per share.
Earlier Zee had announced that it has taken a 48.38 per cent stake in ETC Networks for a consideration of Rs 17.84 crores. While ETC is one of the few profitable television networks in the country, the synergies of this investment are not so visible.
According to analysts, the deal will give Zee say into ETC, Hindi music channel and ETC Punjabi, a Punjabi and Hindi music channel. Zee already has Zee Music and Alpha Punjabi channels catering to almost same programming genres.
The current management of ETC has brought out the fresh infusion on funds. ETC Punjabi, leading channel in Punjab is expected to improve its visibility further by reaching out to SitiCable, homes on prime band.