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Ambarish Mukherjee

HSN Cyprus seeks FIPB nod for uplinking

New Delhi May 21 The TV 18 group has decided to launch a general entertainment and infomercial channel, initially in India and eventually entering the West Asian, UK and US markets.

According to the plans, the Indian operations would be launched with an investment of around $13 million, funds for which would be routed through companies incorporated in the Cayman Islands and Cyprus, sources said.

The main company through which funds would be routed is Cyprus-based HSN Cyprus.

HSN Cyprus is a joint venture company between Cayman Islands-based Network 18 Holdings Ltd and Mauritius-based SAIF II Mauritius Company Ltd, a subsidiary of SB Asia Investment Fund II LP, which manages funds worth $643 million.

Seeks FIPB nod

HSN Cyprus has sought approval from the Foreign Investment Promotion Board (FIPB) to uplink and undertake broadcasting business for this channel, which would come under the "non-news and current affairs" category.

The company has been capitalised with equity shares as well as preference shares. Post conversion of preference shares, Network 18 Holdings would hold 75 per cent and SAIF would hold 25 per cent stake, respectively, in HSN Cyprus, the company has informed the FIPB.

Subsidiary

HSN Cyprus has further informed the FIPB that the company has already incorporated a wholly owned subsidiary in India named TV 18 Home Shopping Network Private Limited, which would carry out the operations in India. The Indian subsidiary has already been capitalised with around $13 million and additional funding would be decided on business needs.

According to the company's application filed with the FIPB, the various types of programmes that would be broadcast through this channel would include travel shows providing destination choices, concerts and entertainment-led programmes, real-life dramas and documentaries.

The programmes would also focus on brands and will have brand and services-led comparison shows.

Uplinking licences

The company has also simultaneously sought permission from the Ministry of Information and Broadcasting for uplinking licences, the sources said.

TV18, Viacom deal?

PTI reports: TV18 group is likely to sign an agreement with US entertainment major Viacom to float a general entertainment joint venture.

The 50:50 venture is likely to be signed on Tuesday during the visit of Viacom CEO and President, Mr Phillipe P. Dauman, industry sources said. The joint venture is likely to invest about Rs 500 crore and Viacom's popular music channel MTV in India is understood to be transferred to the joint venture, the sources said. When contacted, TV18 Group officials declined to either confirm or deny the move.

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