Investors do not seem to fancy the overrated TV9, which has been on the lookout for a buyer for some time now without apparent success. Srini Raju, the promoter of Associated Broadcasting Company Limited (ABCL), which runs 6 channels in various languages, put the group on sale, stating over and over again that he would offload his stake in return for a good price.
Having failed to attract the right kind of suitors, ABCL has reportedly mandated Edelweiss Capital to find an investor that also includes complete exit from the business if the valuation is right.
According to Indiantelevision.com, ABCL has a fund requirement of Rs 4 billion to launch news channels in Tamil for the Chennai market, Oriya and Hindi for the National Capital Region (NCR). The plan is to expand its fleet of channels to nine.
“We are looking at an investor to expand our operations. We are prepared to dilute and may even exit if we get the right price,” the website quoted a source familiar with the development.
The company is presently valued at around Rs 350 crores and Srini Raju holds aorund 85 per cent in ABCL.
ABCL has made an equity investment of Rs 80 crore into the business and has taken a debt of Rs 50 crore from private equity fund Saif.
The company has turned around, making profit with a revenue of Rs 108 crores in FY ’11.
