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Astro
All Asia Entertainment Networks Ltd is buying 26.01 per cent
stake in Hungama TV for a consideration of $7 million (Rs
310 million).
UTV
announced on Wednesday that Astro or its affiliates would
buy the stake in United Home Entertainment Ltd (UHEL), the
company which runs Hindi kids channel Hungama TV, by subscription
to equity, preference shares, convertible debt or a combination
of such instruments. The company, however, did not state the
acquisition price.
"The
size of the deal is $7 million, putting the company valuation
at a little under $28 million (Rs 1.24 billion)," according
to a source close to the deal.
Animation
'xpress sister concern Indiantelevision.com was the first
to report that Astro was planning to pick up 26 per cent in
UHEL. Hungama TV plans to expand into regional languages,
initially into Tamil and Telugu.
 UTV's
holding in UHEL will be 49.5 per cent and Astro's 26.01 per
cent, UTV Software Communications COO Ronald D'Mello said.
The balance will be with UTV founder-promoter Ronnie Screwvala.
"Hungama
TV is planning to expand into regional languages in the next
6-9 months, the
first priority being in Tamil and Telugu. With investment
of Astro into UHEL, we will now look at expanding our operations
in broadcasting and content in other Indian languages and
also in South East Asian countries where our partner has existing
operations. Astro is looking at starting channels in Indonesia
and Malaysia where we will be involved in developing the kids
channel. We are also looking at other kids segment including
content for the age group between 4-14 years," D'Mello
said.
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