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'Too complicated' Deccan Chronicle makes Peepul back out

Were suggested move by bankers, but co-founder, MD says, DCHL is too complicated for someone like them

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BS Reporter Hyderabad
Last Updated : Oct 10 2013 | 1:02 AM IST
Hyderabad-based private equity firm Peepul Capital did not go ahead with its plan to invest in debt-laden Deccan Chronicle Holdings Limited (DCHL) as the affairs of the company were “too complicated.”

“Some of the bankers, who have lent money to DCHL, are also our bankers. They suggested to me about  investing in it but it (DCHL) is too complicated for somebody like us,” said Srini Raju, co-founder and managing director of the over $700-million private equity firm, in an informal chat with mediapersons here on Wednesday.

Raju, whose firm i Labs had earlier invested in Associated Broadcasting Company Limited (ABCL) that owns TV9 television channels, said he wanted to acquire DCHL purely as an investor and not with an intention to become a media firm head.

iLabs and other close associates of Raju, who hold 60 per cent stake in ABCL, had decided to exit from the media house since 2008, but the prevailing macroeconomic conditions and market sluggishness was stated to be making the exit difficult.

“We have signed agreements with them (buyers). But it is taking longer than we thought because of the market conditions,” Raju said.
 
According to Raju, the combined investment of all the stakeholders in ABCL will be around Rs 100 crore. They expect 3 to 4 times on their investment.   
 
He said TV9, which runs six channels -- two in Telugu and one each in Kannada, Gujarati and Marathi besides an English channel for Karnataka -- had been making profits from "day one".
 

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Earlier, Raju launched the theme, 'Yes, You Can! Dream-Think-Achieve', of the TiE Entrepreneurial Summit (TES 2013). The three-day summit, being held by The Indus Entrepreneurs (TiE) from December 18, 2013, is expected to attract 2,000 participants from India and abroad.
 
TES convenor, Ananth Rao, said the summit would be a confluence of venture capitalists, angel investors, small and medium business owners, service providers, aspiring entrepreneurs, foreign delegates and policy makers across the globe.

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First Published: Oct 10 2013 | 12:34 AM IST

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