The Hindu Business Line : Katra group eyes 50% of Radhika’s stake in Radaan Media

Chennai, April 27 The Ramesh Vangal-promoted Katra group is set to foray into the media industry soon. Mr Vangal is close to acquire stake in Radaan Mediaworks India Ltd, promoted by actor Ms Radhika Sarathkumar. Sources close to the development said Mr Vangal would buy out at least 50 per cent of Ms Radhika’s stake in the entity.

Since Ms Radhika holds 51.42 per cent in Radaan (2.78 crore shares), buying half her stake would also trigger an open offer. At a later stage, Mr Vangal, keen on holding a majority stake in the company, may infuse capital through issue of fresh shares.

Talks have been initiated and a deal may be arrived at soon for share transfer for a consideration of around Rs 10 per share, which works out to around Rs 14 crore. The Rs 2 share closed last week at Rs 6.30 on the NSE.

According to the sources, Ms Radhika is agreeable to diluting her stake as she wants to focus more on the creative part of the business.

However, attempts to reach officials of both Katra group and Radaan for confirmation turned out to be a futile exercise.

While the Katra group’s businesses include agro science, healthcare, alcobev, marine, services and IT, Radaan is into producing television content. It also forayed into film production and so far produced three films and a few more are in the pipeline.

Currently, it produces TV contents exclusively for Sun TV Network for its channels in Tamil, Telugu, Kannada and Malayalam. It also produces Sinhalese content for Maharaja TV in Sri Lanka and has tied up with ETV and Zee to produce content for Gujarati and Marathi channels.

For the full year ended March 31, 2007, it posted a net profit of Rs 1.6 crore on a turnover of Rs 45 crore.

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