Essel may take 60% stake in UNI

Media West, an investment company promoted by Subhash Chandra's Essel Group is close to picking up about 60 per cent stake in the news agency United News of India (UNI) for an undisclosed amount.

According to sources close to the deal, its structure and size was being worked out. UNI was set up under the Section 25 of the Companies Act and has to be run as a non profit organisation. UNI's management was not available for comment.

UNI has nine media organisations as shareholders, who are also in the board of the news agency formed in 1961. The other shareholders and board members of UNI include media companies like HT Media, Times of India Group, Ananda Bazar Patrika and The Hindu.

An Essel Group spokesperson confirmed the development. "Essel Group, as promoters of DNA, has joined other media owners in UNI as shareholders. We are not in a position to disclose the holding in the venture." Ashish Kaul, senior vice president, Essel Group, said.

According to Essel Group sources, the deal will become a key driver for nation-wide growth of DNA, the English newspaper co-promoted by Chandra. DNA is expected to use the nation-wide network of UNI to straighten its news gathering network.

"With DNA at a growth curve, we are of the view it will be able to utilise the reach and strengths of UNI. We think it will be a key part of DNA's growth plan," a source said.

At present, UNI has over 1,000 subscribers in more than 100 locations in India and abroad. These include newspapers, radio and television networks, websites, government offices and private and public sector corporations.

The agency's communication network stretches over 90,000 kms in India and the Gulf states with bureaus in all major cities and towns of India.

It has more than 325 staff journalists around the country and more than 250 stringers, covering news events from remote centres. UNI's wire service is available in three languages "" English, Hindi and Urdu.

UNI has collaboration agreements with several foreign news agencies, including Reuters and DPA , whose stories are distributed to media organisations in India.

Apart from that, UNI has news exchange agreements with Xinhua of China, UNB of Bangladesh, Gulf News Agency of Bahrain, WAM of the United Arab Emirates, KUNA of Kuwait News Agency, ONA of Oman and QNA of Qata.