The Hindu Business Line : Sony Entertainment to acquire SAB TV brand for Rs 57 cr

Sri Adhikari Borthers Television Network Ltd (SABTNL) today informed the BSE that SET Satellite Singapore would pay $13 million (roughly Rs 57 crore) for the brand, 1305 hours of library programming (representing 20 per cent of over 6500 hours of library strength with SABTNL) and related assets.

About Rs 15-16 crore from the amount received would go towards retiring SABTNL's long-term debt. "The deal should be effective in a month's time," Mr Markand Adhikari, Managing Director, SABTNL, said when contacted. The transaction will have no impact on the equity pattern and management of the company.

SABTNL would also enter into a programming arrangement with SET India Pvt Ltd to provide content worth Rs 75 crore. This money would come in tranches alongside actual provision of content, the Rs 57-crore transaction covering brand, 20 per cent of library and related assets being the initial part of the deal.

Major assets such as land, building, machinery, equipment and intangible assets, mainly more than 5200 hours of library programmes, will remain with SABTNL.

For the present SAB TV, which reaches an estimated 30 million households, will continue to be telecast from its existing satellite.

The move makes SABTNL, a listed entity, a focused content supplier. Mr Adhikari said the company had not been weakened through parting with its brand. The value of the SAB TV brand had earlier been pegged at around Rs 42 crore, sources familiar with the deal said.

"The proceeds of this deal will be used to create and upgrade the infrastructure required for content production business such as studios, production and post production facilities, to set up infrastructure for animation programmes, to acquire key talents, to expand the content opportunity in international markets," an official statement said.

According to it, group companies held by SABTNL's core promoters will launch current affairs and news channel `Janmat' and Marathi channel, `Mi Marathi' by May 2005. SABTNL will provide content for both the channels.

While SAB TV had dabbled in a small way in current affairs programming, Mr Adhikari said the proposed two channels would have current affairs and news as their mainstay.

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Sony Entertainment to acquire SAB TV brand for Rs 57 cr