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Asianet puts off IPO after Zee deal
Asianet Communications Ltd (ACL) has
decided to defer its Rs 70-crore initial public offering (IPO). The move
follows the sale of 51 per cent stake to Subash Chandra-controlled Zee
Telefilms in an all-stock Rs 200 crore deal.
Zee Telefilms will now bring in additional money to part-fund the company’s
proposed expansion plans including the launch of Tamil, Kannada and Telugu
channels.
ACL was originally weighing the options of either going for a public issue
or bringing in a dedicated media fund or a strategic partner for funding
its Rs 200 crore mega expansion plan. With Zee Telefilms (ZTL) now being
roped in as a strategic partner, the company has decided to defer the
public issue, ACL director K Madhavan told The Financial Express.
Subash Chandra will be inducted on the Asianet Communication board shortly
in place of Murali Menon who will step down to pave the way for the entry
of Zee supremo. The Memorandum of Understanding (MoU) also provides for
ACL managing director Reji Menon’s representation on the board of
Zee Telefilms.Asianet’s Malayalam channel has been undergoing major
changes for over the last one year after the new management assumed control.
From a channel rooted in the traditional Kerala culture, it is being transformed
into one with a national focus.
Emphasis on programmes with global and national leanings was part of Asianet’s
strategy to emerge as a television broadcast brand in south India and
the Middle East. Asianet will launch the Kannada channel soon, which will
be followed by Tamil and Telugu channels. Asianet Global, a channel for
overseas malayalees, is already a big hit.
Asianet Communication Ltd is going ahead with its expansion plans by buying
the rights for Tamil films and dubbing its popular Malayalam serial Sthree
into Tamil with local actors in the lead. Zee’s entry into the south
will now enable Asianet to offer the popular Zee serials in regional languages.
Asianet’s content will now be available through Zeenext.com, Zee’s
portal business.
FE Report