Star India completes Asianet takeover,acquires remaining 13% stake for $50mn

[Dinesh jain]

Star India, 21st Century Fox’s wholly-
owned subsidiary, has completed the acquisition
of its successful and profitable regional
entertainment network Asianet Communications.
Star has made the residuary 13 per cent stake
acquisition for approximately $50 million in the
fourth quarter of the fiscal ended 30 June 2014.
Paid in cash, the new transaction values Asianet
at $384.61 million.

Asianet runs Malayalam- and Kannada-language
channels. Asianet and Suvarna are leaders in the
Kerala and Karnataka market respectively. Star
also runs Tamil general entertainment channel
Vijay TV.

The transactions were accounted for as the
purchase of subsidiary shares from non-
controlling interests.

In fiscal 2013, Star had increased its interest in
Asianet by 12 per cent to 87 per cent for
approximately $160 million. Earlier, in FY2011,
Star had acquired 24 per cent stake in Asianet
for approximately $92 million, thereby increasing
its interest in the company to 75 per cent from
51 per cent. ..

Thus, Star has paid an aggregate value of $302
million in three tranches for purchasing 49 per
cent equity interest in Asianet.

In 2009, Star India had entered Asianet after
buying a majority stake in the company through a
joint venture with Rajeev Chandrasekhar’s
Jupiter Entertainment Ventures. The company
had paid $235 million in cash and assumed net
debt of around $20 million for a 51 per cent
interest in the four channels owned by Asianet.
Reju Menon and Shashi Kumar founded Asianet
Communications in 1991. Later, in 2006, Rajeev
Chandrasekhar acquired a 51 per cent stake in
the company reportedly for Rs 150 crore.
Star India completes Asianet takeover, acquires remaining 13% stake for mn | TelevisionPost.com