Subhash Chandra, chairman of the Rs 486-crore Zee Telefilms Ltd (ZTL), yesterday said the total turnover of the Zee media companies would top Rs 10,000 crore by 2005.
Chandra was speaking at an extraordinary general meeting of ZTL, the holding company of the group. The AGM was called to seek shareholders' nod for ZTL's plan to pick up 61 per cent stake in Asianet Communications. The Rs 255-crore deal was unanimously approved.
Zee proposes to make a foray into the regional language market in south India. And Asianet, which runs a Malayalam channel, could well be its vehicle in that region.
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Under the deal signed with Asianet Communications, the promoter of Asianet, Raji Menon, will be issued a less that 1 per cent stake in ZTL and will also be a member of its board.
Also, Menon will be paid Rs 100 crore as non-competition fees. Zee has the option to hike the stake to 73 per cent by buying an additional 12 per cent equity share from Menon.
Chandra told shareholders that all future channels to be launched by the company would be in the digital mode. Chandra's media empire, built during the last decade, recorded combined revenues of Rs 1,280 crore in 1999-2000.
The ZTL chairman added that Asia Today (ATL), in which he recently bought out Rupert Murdoch's 50 per cent stake, would be the vehicle for the group's international expansion. Till recently, ATL was a shell company with no assets.
The other companies in the Zee fold are Siti Cable, the cable company, Patco, ATL, Asia TV (UK), Zee TV (US), Zee TV (Africa), Zee International, Expand Fast Holdings and Software Supplies International. All these companies are wholly-owned subsidiaries of ZTL.