India Value Fund gets FIPB approval to acquire 100% of Atria's broadband biz

Thakur

Banned
Joined
30 Aug 2013
Messages
14,856
Reaction score
8,575
Private equity firm India Value Fund Advisors (IVFA) has got the approval of the Foreign Investment Promotion Board (FIPB) to acquire 100 per cent of Atria Convergence Technologies’ (ACT) broadband business.

The foreign investment is up to Rs 200 crore (Rs 2 billion).

However, the shareholding in the cable TV outfits will remain unchanged. “The FIPB approval was needed for the broadband business only.

The cable TV operations are run through downstream subsidiaries in compliance with the regulations and in association with local promoters.

There will be  no shareholding changes in the cable companies.

We have debt lines for Rs 100 crore (Rs 1 billion and cable TV would require no extra funding,” ACT CEO Bala Malladi told TelevisionPost.com.

In Bengaluru, the cable TV operations are run through Kable First India where ACT has 74 per cent stake and the balance 26 per cent rests with the local promoters. A similar structure prevails in ACT Digital, which operates in Andhra Pradesh.

In ACT Cable TV, which  operates in Nellore, the majority is with the local promoters while ACT has 49 per cent stake. IVFA holds around 70 per cent stake in ACT. The balance is held by CS Sunder Raju and K Nagaraju.

“The enabling permission for IVFA to take its stake up to 100 per cent in ACT’s broadband business has been obtained from the FIPB. IVFA currently has around 70 per cent stake in ACT.

But if all the existing shareholders decide to pump in the investments proportionate to their stakes, there will be no change in the equity structure,” said Malladi.

Indium IV (Mauritius) through India Value Fund IV had sought FIPB clearance for making investment in ACT. The FDI proposal is up to Rs 200 crore (Rs 2 billion).

As per the proposal, IVF IV and IVF III-A together propose to invest in excess of 49 per cent up to 100 per cent by subscribing for equity/compulsorily convertible preference shares/fully convertible debentures of ACT.

Read more at: 

http://www.televisionpost.com/cable/india-value-fund-gets-fipb-approval-to-acquire-100-of-atrias-broadband-biz/
 
Back
Top Bottom
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock