Providence to Park $60m in Asianet Telecommunications Ltd

Monday, February 06, 2007

The media sector has become a new apple of private equity funds’
eye. After parking in handsome money in Nimbus and Eenadu
group by private equity players, Asianet
Satellite Telecommunications Ltd. is in final stages
of negotiations to strike a deal with PE Equity Partners.

The US based fund, which controls over $20 billion investments
worldwide, is planning to invest a whopping amount of around $60
million in this largest cable network services company in Kerala,
Asianet Telecommunications Ltd.

Fast flourishing Indian economy, underpinned by significant potential
and shooting requirement for content is undoubtedly fuelling the
growth of Indian entertainment and media industry that is believed
to grow at 19 per cent to $18 billion by 2010 from its current size
of $7 billion, as stated by the data complied by FICCI
and PricewaterhouseCoopers (PWC).

Talks about the deal reach its final stages with discussions expected
to come up with the result soon, says a connected source. Mumbai
based Rajan Raheja’s Hathway Investments holds the entire stake
in Asianet Satellite Communication Ltd.

As per the discussions, Rajan Rajeha group may continue to manage
the affairs of the company whereas Providence seems to have chances
to hold a strategic stake. The capital will be used for expansion
and business development.

The higher level executives of Asianet Satellite Communications
Ltd. prefer to keep their lips closed on the matter. This Kerela
based company had raised Rs 30 crore by issuing redeemable non-cumulative
preference shares to NRI
financier Satish Raheja. The funds were given on repatriation basis.