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ETC Networks
Ltd. held an extra-ordinary general meeting on March 26, 2002. The
meeting was held to approve issue of fresh equity to Zee Telefilms
Ltd. on preferential basis. ETC and Zee Telefilms Limited, India’s
largest integrated media conglomerate, have agreed to leverage on
each other’s strengths.
The members
of ETC Networks Ltd. at this meeting have approved issues of upto
22,20,812 Equity Shares of Rs. 10 each for a cash at a premium of
Rs. 21.52 per share aggregating Rs. 6,99,99,994/- to Zee Telefims
Ltd. on preferential allotment basis. Zee board has already approved
the investment in equity of ETC. Instead of being a stand-alone
broadcaster, ETC Networks Ltd will now be part of the strong Zee-Turner
bouquet. It will also benefit from financial and business resources
of Zee and access to overseas market.
During his
address to the investors, the Chairperson Jagjit Singh Kohli said,
“In response to the changing times, we are continuously striving
to make our group as market driven and agile as possible. As you
are aware tectonic shifts are changing the very contours of the
economic and business environment, regardless of geographic boundaries.
Digitalization, de-regulation, globalization and investor activism
have altered the corporate landscape. Organizations in India have
had to reconstruct their very business architecture and we, at the
etc, are no exception.” To further elaborate on this move he
added, “Consolidation of channel interests and co-operation
would allow the company to have tremendous opportunities to build
on synergies. The company from being a stand alone broadcaster would
be a part of a strong Zee Turner bouquet. As a result of this, there
will be improved content offerings, which will drive viewership
and subscriber fees. Zee will bring its strength in sales and marketing
for ETC channels and provide a global platform for its content.”
“ETC brand
has been nurtured to bring it to a leading position both in the
music and Punjabi segment. As part of Zee Network, we will have
tremendous opportunities to build on synergies,” said Sandeep
Goyal, C.E.O. Zee. “Zee’s worldwide presence, in more
then 80 countries, provides ETC a window to global audience which
hitherto was not available,” he added.
As an immediate
benefit of this tie-up, ETC channels will have access to a large
pool of resources of Zee in India and abroad. Both companies are
in the process of bringing synergies between their operations. It
will also include content, copyrights of films and songs, marketing
and sales network internationally. ETC will be able to augment its
revenue streams by content syndication and subscriptions from overseas
markets especially for its most prestigious and valuable property
Gurbani. Had ETC built its own network for carrying the channels
for foreign skies, it would have taken a sizable investment and
a very long time. All these will have a direct and immediate impact
on revenues and bottomline of ETC and benefit its stakeholders.
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