Astro subsidiary to acquire 49 pc stake in NDTV Lifestyle for $40 mn
NDTV and Malaysia’s Astro have reached an agreement, wherein Astro subsidiary South Asia Creative Assets Ltd will acquire a 49 per cent stake in NDTV Lifestyle Holdings in two tranches for $40 million. The balance 51per cent stake in the joint venture will be held by NDTV.
New Delhi Television Ltd has informed BSE that it has reached a definitive agreement with a subsidiary of Astro All Asia Networks Plc to create a strategic alliance for lifestyle channels in India.
As per the proposed transaction, South Asia Creative Assets Ltd (a subsidiary of Astro All Asia Networks Plc) will acquire a 49 per cent stake in NDTV Lifestyle Holdings Pvt Ltd (NLHPL) in two tranches, the proposed holding company for NDTV Lifestyle Ltd – the lifestyle subsidiary of NDTV – by way of subscription of $40 million. The balance 51per cent stake in the joint venture will be held by NDTV. NDTV Lifestyle operates English-language lifestyle television channel NDTV Good Times.
The transaction is subject to receiving all requisite regulatory approvals.
In addition to operating NDTV Good Times, NDTV and Astro may also engage in non-material diversification into complementary lines related to the lifestyle segment through the joint venture company.
In August 2010, NDTV had clarified to the BSE that “negotiations are currently underway for a strategic alliance in the lifestyle business” and added that the proposed alliance was only at the stage of discussions.
NDTV’s clarification was in reaction to a news item that had appeared in a leading financial daily titled ‘NDTV gains 18% on talks of stake sale in lifestyle arm’.
Earlier on May 4, 2010, NDTV had informed the BSE that the NDTV Group had decided to exercise its right to terminate the definitive agreements for a strategic alliance with US-based media company Scripps Networks Interactive Inc. The alliance was for lifestyle channels in India.
Astro is an integrated cross media group with presence in Malaysia, India, the Middle East and other regional and international markets, primarily engaged in the provision of direct-to-home subscription television services, radio services, film library licensing, multi-media interactive services, and television content creation, aggregation and distribution, Astro also has investments in pay television and radio broadcasting in India.
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