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.

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