Zee Entertainment Enterprises Ltd (ZEEL), a television network in India, is acquiring an additional 45% equity stake in its subsidiary Taj TV Ltd, Mauritius in an all cash deal. It further plans to buy another 50% equity stake in its Indian arm, Taj Television India Pvt Ltd, said a company statement.
The board of directors of the company has agreed on both the transactions, which together cost $44.145 million for ZEEL. Taj TV Ltd is a Dubai-based television broadcasting company and part of Bukhatir Group, a diversified business group in United Arab Emirates. Taj TV is known for its much acclaimed sports channel Ten Sports. The channel was launched in 2002, and has reach to around 55 million homes in the Indian subcontinent, the Middle East, Europe and Asia currently.
Zee had earlier acquired the initial 50% stake in Ten Sports in FY 2007 at an enterprise value of $114 million. It plans to buy the remaining stake to make it a wholly owned subsidiary of the company.
“These initiatives will play an important role in further strengthening Zee’s position as the leading media conglomerate of the region, and will help deliver higher returns in the future,” Punit Goenka, MD & CEO ZEEL said in the statement.
In the last quarter, the company has also undertaken some merger agreements including the merger of ETC Networks Limited (ETC) with the company. ETC is now a 50.18% subsidiary of ZEEL.
ZEEL has announced its third quarter results ended December 31, 2009 with a consolidated revenue of Rs 530.9 crore. The net profit of the company is Rs 146.4 crore, a 74% surge from Rs 83.97 crore for the quarter ended December 31, 2008.