Hollywoods leading studio MGM is among the frontrunners to snap up a substantial stake in Home TV. Chances are that MGM will pick up to 49 per cent through TV Mauritius in the financially beleaguered Television India Ltd (TVIL), which manages the affairs of Home TV.
But, MGM still has to contend with a major NRI group with media and industrial interests in India and a US-based entertainment conglomerate.
The Hindustan Times, which is one of the main promoters of Home TV with a 30 per cent stake in the venture, may dilute its stake in the joint venture by about 10 per cent to conform to the 20 per cent limit on media cross-holdings suggested in the Broadcast Bill.
Other promoters UK-based Pearson Plc and Carlton Communications which also hold 15 per cent equity stake each in TV Mauritius at present, are likely to either pull out of the venture or dilute their stakes as per the Broadcast Bill, which the UF government has promised will be enacted into a law during the winter session of Parliament.
Informed cable & satellite TV industry sources yesterday admitted that Home TV will see some major restructuring in the next few months.
A new business plan for which Mumbai-based Nimbus Communications had been hired has been liked by the existing shareholders of Home TV and some details are being ironed out, the sources said.
In June, Pearson Plcs Catherine Mackay, a whole time director of Home TV, had said in a written statement: We are seeking new management but nothing has been agreed upon yet.
According to C&S industry sources: MGM, with its vast libraries of movies and TV dramas and serials, is the front-runner in picking up a substantial stake in Home TV and the quantum will depend on the regulatory environment.
At a later stage another Indian partner will be brought in to keep the foreign holdings down to the permissible limit, the sources said.
TVILs Mohan Bharara told Business Standard yesterday: The issue of shareholders restructuring in Home TV is a bit too premature at present...the government has been saying the broadcast law will be passed in the winter session. We will wait to see the outcome before doing anything.
