Mumbai-based public-listed media and content syndication firm Trilogic Digital Media Ltd is acquiring the entire business of Fashion Television (FTV) franchisee Trinity Dream Works Pvt Ltd (TDPL) for an undisclosed amount, as per a stock market disclosure.
TDPL was formed to unlock the brand recall and positioning of the FTV and F brand in India and has signed exclusive agreements with FTV, Europe for the same. The company's revenue model revolves around advertising (broadcast operations), license fee and royalty income for its licensing and merchandising verticals.
Earlier, FTV was brought to India and represented in India by Modi Entertainment Ltd, led by Lalit Modi, former chief of Indian Premier League. The two partners split sometime back and were involved in a legal battle related to their agreement which expired in the past.
The company is looking at licensing the F brand in various product categories, including super luxury real estate projects called F/Fashion Residences; launching a chain of international lounge bars under the brand name F Lounge and setting up a high-end grooming chain called F Salon & Spa.
On the merchandising side of the business, it is looking to tie up with others to launch F Jewellery and branded beverages including F Energy Drinks and alcoholic beverages such as F Fashion Vodka. It also plans to take the F brand to the Middle East and other markets in the Indian subcontinent, as per a stock market disclosure. The firm did not disclose who are the current promoters of TDPL.
Trilogic is also looking to raise up to Rs 400 crore ($63.9 million) through a preferential allotment to various investors. Although it did not share the details, it said the deal will involve Shrey Chemicals, an Ahmedabad-based chemical manufacturing company, picking as much as 24 per cent stake post allotment.
This could mean a significant equity dilution given that the firm currently has a market cap of just Rs 46 crore. For the quarter ended June 30, 2013 it had revenues of Rs 10 crore with net profit of Rs 67 lakh.
Trilogic is also merging two privately held firms Snip Entertainment Pvt Ltd and Sphere Entertainment Pvt Ltd. Both these firms are into content syndication business and while one is owned by Trilogic co-promoter, the other is owned by one of its significant shareholders. These firms were into music content syndication and later added licensing of movies, clips, audio visual songs and animated content. Their clients include television channels besides other content distributors.
In another development, Trilogic and Shrey Chemicals will create a jointly held special purpose vehicle (SPV) to manage an exclusive content platform catering to over 4 million BSNL subscribers pan India. The platform will deliver movies, songs, TV shows, clips and other content.
Shrey Chemicals (earlier known as Dhvanil Chemicals) recently appointed Sanjiv Mohan Gupta as its chairman and managing director. Gupta also leads Jagran Entertainment Media Pvt Ltd which is engaged in the entertainment business and produces mainstream Hindi cinema, television shows and events. Apart from entertainment activities, the company is engaged in media buying in print and television for clients across the globe. Currently two of its movie projects are going on floors as their pre-production work is over.
Shrey Chemicals is to acquire the entire businesses of Jagran Entertainment Media as also Jagran Infra-Projects, which is into trading of building materials and iron pipes used for modular kitchen. Its name would also change in line with entering the media business.
This could in effect mean a reverse merger, with Gupta leading the listed firm and also being possibly one of the key shareholders of Trilogic through Shrey Chemicals.
(Edited by Joby Puthuparampil Johnson)