Sri Adhikari Brothers Television Network (SABTNL) has entered into a strategic agreement with the Singapore-based SET Satellite, owner of Sony Entertainment and Max channels, to sell its brand and 1305 hours of library programs for $13 million ( approx Rs 57 crore).
SABTNL will also supply content worth Rs 75 crore to SET Satellite which will be shown on the foreign company’s Indian channel, SET India. Post the deal, SABTNL will concentrate on content production.
A media release issued by SABTNL stated that the proceeds of this deal will be used to create and upgrade infrastructure required for content production which includes studios, production and post production facilities.
The company has plans for venturing into animation and explore international markets as well, the release said. SABTNL has stated that the deal will have no impact on the ownership structure of the company.
SABTNL will retain 5,200 hours of library programs, post the deal. The Sri Adhikari group will launch two news and current affairs channels in Marathi by May 2005. SABTNL will provide content to these channels.
The acquisition will strenghten the SET India- One Alliance bouquet.
The announcement pushed up stock prices of SABTNL to Rs 124.40 after opening at Rs 116 on the Bombay Stock Exchange.
However, the stock lost moment during intra-day trades and closed at Rs 108.30, lower than Friday’s close of Rs 115.