Top Story

e4m_logo.png

Home >> Media - TV >> Article

29% stake in Space TV on offer to FIIs

24-March-2004
Font Size   16
29% stake in Space TV on offer to FIIs

Space TV, the direct-to-home (DTH) television joint venture between the Tata group and Rupert Murdoch’s News Corp, is likely to divest up to 29 per cent equity in the company to foreign institutional investors (FIIs) in due course.

The company’s proposal with the government says the equity will be diluted by the Tata group, whose holding in the company will come down to 51 per cent from the present 80 per cent. News Corp’s holding in the company will remain at 20 per cent.

News Corp’s investment in Space TV will be through the company’s wholly owned Dubai-based subsidiary, Network Digital Distribution Services, which plans to acquire the holding in Space TV in two tranches.

First, it will acquire a 20 per cent stake from C Jagdish Kumar and Ajay Sinha, former Space TV directors. Next, fresh investment in the equity share capital of Space TV, along with the Tata group, will raise Network Digital’s stake to an overall 20 per cent.

The Indian holding in the company will be through Tata group companies, including Tata Sons. In the event of a delay in getting FII funds into the company, Space TV will fund a part of its investment by loans from the promoters of the company.

Of the total projected cost of around Rs 1,600 crore for the DTH venture, the initial foreign equity investment by Network Digital is estimated to be around Rs 201.45 crore (about $44.03 million).

The investment will go towards putting up the infrastructure, laying out a distribution network and entering into marketing tie-ups.

The company is expected to offer 65 channels to begin with besides niche channels like lifestyle, cookery and gardening. The monthly bill for the service will range between Rs 160 and Rs 300.

In the first year of operation the company is expecting about 1 million subscribers and expects the number to go up to 10 million in the next eight years.

Space TV also expects that once the number of subscribers picks up, some Indian companies may come forward to manufacture set-top boxes locally.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

In an exclusive data shared with e4m, Pan Masala/Zarda/Gutkha had the highest jump of 185 per cent in terms of ad volumes in the first 14 matches

Bose, who has a career spanning over two decades, was DNA’s Editor-in-Chief. He has previously been associated with the India Today Group

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compe...