India’s largest optical disk maker is planning to hive off its entertainment business into a new entity. The company has valued Moser Baer Entertainment at Rs 250 crore. The company is seeking shareholders approval regarding this decision.
The transfer will be made through a slump sale of the entertainment business by Moser Baer to Moser Baer Entertainment, and the new company will act as a 100 per cent subsidiary of Moser Baer. The company has taken this decision in order to unlock value and increase its focus on the entertainment business.
Moser Baer is also planning to raise $300 million for its solar unit, Moser Baer Solar Plc, through private placement.
The company entered the home entertainment market back in 2006 when it released VCDs and DVDs priced at Rs 28 and Rs 34. The company has ambitious expansion plans for the home entertainment business. Moser Baer Entertainment revenues of $10 million in the quarter ending March ‘08.
The company plans to generate annual revenues from this business to the tune of $200 million. Moser Baer Entertainment has also entered into film production and has produced Shaurya, which released earlier this year. Its also foraying into production of regional movies as it has five Tamil movies under production. The company is also foraying into theatrical distribution. It has already distributed Airbuddies, an animated movie and has already acquired rights to Maan Gaye Mughal-E-Azam from Venus Records & Tapes.