Uttar Pradesh-based Sahara India group is leading the race to pick up equity stake in TV India Ltd through TV Mauritius, which manages the affairs of Home TV.
Sahara group was one of the three companies which was in the running for injecting fresh funds into the financially beleaguered Home TV along with Hollywood major Metro Goldwyn-Myer (MGM) and US-based civil aviation and energy major having small interest in entertainment industry, Ogden. According to cable and satellite TV industry sources, Sahara groups proposal envisages an injection of about Rs 40 crore into Home TV.
The Sahara proposal is believed to have got the okay of three shareholders of Home TV namely, The Hindustan Times (30 per cent stake), Hong Kong-based TVB (15 per cent holding) and merchant bankers Schr-oeders (25 per cent stake), the sources added.
The deal will only be inked when the remaining two give their go-ahead. Efforts made to contact executive director of The Hindustan Times, Shobhna Bhartia, proved futile as her office said she was out of town.The other two shareholders of Home TV, UK-based Pearson plc and Carlton Communications (both of whom have 15 per cent stake each) are yet to make up their minds on the Sahara proposal.
MGM, which was in the forefront of picking up equity stake in Home TV with its vast library of programmes and films, has, along with some other major foreign players has put on hold its plans to enter India owing to the uncertainty in the broadcasting scenario, media analysts pointed out.
A majority of members of a joint parliamentary committee, which had been set up before the dissolution of the eleventh Lok Sabha, were unanimous in capping foreign equity in media ventures at not more than 26 per cent.
The UP-based Sahara group, which has varied media interests including a newspaper called Rashtriya Sahara, according to the sources, has also diluted some of its conditions for investing in Home TV. Initially Sahara had wanted to rename the satellite channel as Sahara TV.
Fresh investments in TVIL will be made through TV Mauritius, the off-shore company, and at least one of the existing foreign partners is likely to pull out to make room for the newcomer.
The sources said Pearson Plc has indicated its desire to withdraw from the joint venture as and when a new partner is found keeping in line with its global business consolidation.
Pearson recently closed down its South East Asia office and is concentrating on places like Hungary where it has won a terrestrial TV licence.
