KEC International bags orders worth Rs 801 cr - Business Standard (blog)
TV 18, CNBC plan joint venture/ Business Standard May 23,2003
Television Eighteen (TV 18) India and CNBC Asia will form a joint venture in India to undertake the broadcasting of its business news channel, to meet the requirements under the recent uplinking policy for news channels.
The regulations, announced on March 26 this year, stipulate that the foreign holding in a news channel company uplinking from India should not exceed 26 per cent.TV 18 is the first to come out with a formal announcement on the restructuring of company to meet the new regulation.
As per the understanding between the two companies, CNBC Asia would either pick up an equity stake in TV 18 or one of its subsidiaries or the two companies would form a joint venture company for the purpose.
At present, TV 18 Mauritius and CNBC Asia Mauritius, have a Mauritius- based joint venture called CNBC India, which runs its business news channel.
In CNBC India, CNBC Asia Mauritius holds 51 per cent while the rest is with TV18 Mauritius. As per the present arrangement TV 18 produces content for CNBC India.
CNBC India is owned by the joint venture in in Mauritius. As per the rules, this property has to be transferred to an Indian company in which a foreign company cannot hold more than a 26 per cent stake.
CNBC?s proposed investment in either TV 18 or the new joint venture company cannot exceed 26 per cent.
?We want to work as a joint venture partners. The structure and nature of it is being worked out,? Alexander Brown, president and chief executive, CNBC Asia Pacific, said.
Subsequent to the restructuring, the business channel CNBC India, will be re-branded as CNBC TV 18.
Raghav Bahl, managing director, TV 18, said, ?We are expected to work out the exact structure of the company in the next four to six weeks. The restructuring shall be done in a manner to capture value for all the existing TV 18 shareholders. TV18 would now become a full fledged broadcaster.?
Asked about the fate of the existing company, Bahl said, ?It has not been decided. We would take an appropriate step soon.?
TV 18 was also recently given the approval to uplink a news channel from India. ?We would be utilising the uplinking license that has been awarded to TV 18 to operate the channel and uplink from India,? Bahl said.
According to Haresh Chawla, CEO CNBC India, the company has become profitable in the last six to nine months and has increased the number of advertisers on the channel to 100 from 30 a year ago.
He also said that the channel, which is part of The ZeeTurner bouquet now reaches 11 million homes.
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