Sony Pictures Television (SPT), a wholly-owned subsidiary of Sony Pictures Entertainment Inc, is set to acquire an additional 32 per cent stake in MSM (Multi Screen Media) for $271 million (Rs 1,491 crore) taking its shareholding to 94 per cent in the television network company in India.

The parent company of MSM has bought the additional stake from two holding companies comprising Grandway Global Holdings Ltd and Atlas Equifin Private Ltd, represented by seven Indian investors including actor Mr Jackie Shroff, and Mr Raman Maroo, Managing Director, Shemaroo Entertainment.

The transaction is expected to be closed by end December.

The balance 6 per cent stake in MSM will be picked up by a Singapore-based private equity player Capital Group.

Speaking to Business Line , Mr Manjit Singh, Chief Executive, MSM, said: “The Indian shareholders wanted to exit for a while and were waiting for the right valuation. The increase of stake by the parent company shows its commitment to grow the television channel business and there will be no funding constraints going forward. We will continue to look for more acquisitions in the Indian market.”

Recently, Sony Pictures Television decided to acquire a 30 per cent stake as part of a strategic alliance with MAA TV and its network of Telugu channels.

MSM runs six channels: Sony TV, SET Max (the official broadcaster of the IPL), SAB TV, Sony Pix, AXN and Animax.

Much of the impact of this acquisition has already been included in Sony Corporation's consolidated financial forecasts for the year ending March 31, 2013.

> purvita@thehindu.co.in

Related Topics
comment COMMENT NOW