INDIA BUSINESS WORLD - JUNE 1st - JUNE 30th - 2008
REAL ESTATE FIRM HOUSING DEVELOPMENT AND INFRASTRUCTURE (HDIL) BUYS 51% IN SAB MEDIA CO
REAL estate firm Housing Development and Infrastructure (HDIL) has said that it has acquired a 51% stake in Broadcast Initiative (BIL), a Sri Adhikari Brothers - controlled media firm, for an undisclosed amount.
The BIL stake purchase will also help HDIL to control 51% each in two subsidiaries of BIL — Sri Adhikari Brothers Media (SABML) and Technocraft Media.
BIL is a national Hindi news channel while SABML is operating a regional Marathi channel, Mi Marathi. Technocraft Media (TMPL) is in the process of starting a regional Bhojpuri channel. HDIL will route the stake purchase through its various group companies, a company statement said.
“The acquisition of 51% stake in BIL, SABML and TMPL is part of the group’s long-term strategy of becoming a significant player in the fast-growing media and entertainment space. The deal will prove to be an ideal entry point for the group, because of the vast media experience of Adhikari Brothers,” said HDIL chairman Rakesh Kumar Wadhwan. He added that HDIL has plans to create a bouquet of regional news and entertainment channels and to become a leading media conglomerate by entering into other assets such as film production, distribution and Studio facilities.
The equity purchase from existing promoters will be followed by an open offer as per SEBI’s takeover regulations. Adhikari Brothers will retain a balance shareholding which may be up to 24% post completion of transaction. the company statement said.
“Our partner ship with HDIL puts us on a new and much stronger platform to harness our capabilities and cope with the increasing competition in the national and regional broadcasting segment,” said Broadcast initiatives MD Makarand Adhikari.
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