Zee Group likely to acquire TV9

Zee group is likely to buy a majority stake in Hyderabad-based media firm Associated Broadcasting Company Private Limited (ABCL), which owns a host of regional news channels under the brand name TV9. Two independent sources confirmed the development.

Venture capitalist Chintalapati Srinivasa Raju (Srini Raju) owns about 60 per cent stake in ABCL, US-based private equity firm Saif Partners holds 20 per cent, while TV9 founder and Chief Executive Officer Ravi Prakash and his associates hold the remaining 20 per cent.

Raju and Saif Partners have been waiting for sometime for desired valuations to sell their stake.

According to sources, the deal between the promoters of ABCL and Zee Group was finalised and the entire transaction is expected to be closed in a couple of months. Zee was one of the four companies that signed non-disclosure agreements with the promoters of ABCL some time back, said a senior official in ABCL.

However, the details of the proposed transaction, in terms of percentage of equity being acquired by Zee, or the deal value was undisclosed. When contacted, the company said it keeps exploring the opportunities time to time and would not comment on any media speculations. ABCL officials said they have not reached any agreement with anybody regarding the stake sale.

“Private equity investors typically follow a sevenyear horizon for their exit strategy while our investors stayed with the company for 12 years. We have been in touch with a people for a possible stake sale. But, no final decision has been taken yet,” TV9 founder and CEO Ravi Prakash said.

Chintalapati Srinivasa Raju owns about 60 per cent stake in ABCL. Saif Partners and Ravi Prakash, along with his associates, hold 20 per cent stake each