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Tag: C. Sivasankaran

  • ED issues Rs 742.58 crore attachment order against Sun TV group’s Marans

    ED issues Rs 742.58 crore attachment order against Sun TV group’s Marans

    MUMBAI: South Indian media baron Kalanidhi Maran and his brother, the former Union telecom minister Dayanidhi – scions of the powerful DMK party of Tamil Nadu – received a setback late last evening when India’s Enforcement Directorate issued an order to attach properties and assets worth Rs 742.58 crore belonging to them. 

     

    It also ordered that certain assets belong to Kalanithi’s wife Kaveri  be attached. The order was issued following investigation by  the agency under the Prevention of Money Laundering Act, says an ED release, and was in relation to an alleged illegal gratification of the same amount Dayanidhi received in the Aircel-Maxis case when he was telecom minister.

     

    The entire money laundering investigation is being done under the eagle eye of the Supreme Court and the ED’s Deputy Director Rajeshwar Singh under the Headquarter Investigation Unit (HIU).

     

    The ED had tweeted earlier in the day that the “ED HIU attaches under PMLA FDs, land & building,shares of Maran brothers worth Rs 742.58 crores in #Aircel-Maxis case.”

     

    Dayanidhi was chargesheeted in that case by the Central Bureau of Investigation in 2011 for coercing Aircel owner C. Sivasankaran during his term as telecom minister  (in 2006) to sell his stake to Maxis which is owned by ageing Malaysian billionaire Tatparanandam Ananda Krishnan.  In return for that companies in Mauritius transferred Rs 742.58 crore allegedly for Dayanidhi into Sun Direct TV Pvt Ltd (SDTPL) and South Asia FM Ltd (SAFL)

     

    The EDs investigation revealed that SDTPL is promoted by Kalanithi Maran and Kaveri Kalanithi and they own 80 per cent of its shares. The shareholders of SAFL are  Sun TV Network  (60 per cent) and 20 per cent each are A.H. Multisoft Pvt Ltd  and South Asia Multimedia Technologies Ltd., Mauritius. Kalanithi also holds 75 per cent of Sun TV Network Limited, while he and his wife own 90 per cent and 10 per cent respectively of Kal Comm Pvt. Ltd.

     

    The ED order has attached the following under the PMLA:

     

    * Fixed deposits held by Dayanidhi Maran and others – Rs. 7.47 Crore
    *  Fixed deposits held by SDTPL – Rs. 31.34 Crore.
    *  Fixed deposits held by SAFL – Rs. 6.19 Crore
    * Mutual Funds held by SAFL – Rs.15.14 Crore.
    * Fixed Deposit held by Kalanithi Maran – Rs 100 Crore.
    *  Mutual Funds held by Kalanithi Maran – Rs. 2.78 Crores.
    *  Fixed Deposit held by Kaveri Kalanithi – Rs 1.30 Crore.
    *  Mutual Funds held by Kaveri Kalanithi – Rs. 1.78 Crore.
    *  Land and Building owned by Kal Comm Private Limited – Rs. 171.55 Crores
    * Free Hold Land and Building owned by Sun Network TV Pvt. Ltd – Rs. 266 Crore.
    * Shares of SDTPL held by Kalanithi Maran – Rs. 139 Crore.

     

    The Marans have 120 days to appeal against the ED order.

  • Sahara to transfer broadcasting operations to listed firm

    Sahara to transfer broadcasting operations to listed firm

    MUMBAI: Sahara Group will be transferring the broadcast operations of its entertainment channels to the listed company, Sahara One Media & Entertainment.

    This is part of the commitment made to C Sivasankaran and BCCL (Times Group holding company Bennet Coleman & Co Ltd) when they acquired stakes in Sahara One Media & Entertainment last year, a source familiar with the deal says. While Sivasankaran’s Aircel Televentures (later renamed Siva Ventures) picked up 14.98 per cent for Rs 1.2 billion, BCCL acquired close to 6 per cent stake in the company.
    The broadcast operations are currently under Sahara India TV Network, a division of Sahara India Commercial Corporation Ltd. “The plan is for the listed company to also have the broadcast operations under it,” says the source.

    The transfer will mean that Sahara One Media & Entertainment will be able to capture the advertising revenues from the two existing channels, Sahara One and Filmy. The company currently earns from the programming it licenses to Sahara India TV Network and from its motion pictures business.

    “Sahara One will be able to capture the full part of the value chain. The entire infrastructure will be under one company,” says the source.

    The cost of running the channels including transponders and carriage fee will, thus, come under Sahara One Media & Entertainment. But there would be no transfer of the assets and liabilities of Sahara India TV Network. “The idea is to start with a clean slate and then build the broadcasting value,” says the source. “Under the current system, Sahara One does not run any commercial risk in the TV business as it produces content and passes it on to the channel on a cost-plus-commission basis,” he adds.

    Sahara’s news channel business also has a separate broadcasting arm and is under Sahara India TV Network (2). Sahara runs six news channels – in the national, regional and city-centric space.

    Meanwhile, the Sahara One Media & Entertainment board has approved raising of resources up to $ 20 million through foreign currency convertible bonds (FCCBs).

    “This will be used to meet the company’s working capital and content acquisition requirements,” says the source. Earlier, Sahara One had planned to come up with a provision to raise up to $50 million as it was at that stage in talks to acquire an equity in Ten Sports. Later Zee Group bought a 50 per cent stake in the sports channel for $57 million.

  • Sahara appoints Ernst & Young for restructuring news business

    Sahara appoints Ernst & Young for restructuring news business

    MUMBAI: Sahara supremo Subroto Roy is looking at restructuring his loss-making news channel business and has asked for suggestions from consulting firm Ernst & Young.

    Sahara’s bouquet of six news channels are sinking in losses of around Rs 1 billion a year, a source close to the company says. “Ernst & Young has been appointed to come up with recommendations for restructuring the operations. There is no mandate to find an investor. Clearly, the whole exercise is to make the venture profitable,” he adds.

    The Hindi news space is dominated by four channels (Aaj Tak, Star News, NDTV India and Zee News) which together garner close to 70 per cent market share in viewership, making the fragmentation at the lower end among several players tough for Sahara Samay Rashtriya.

    And it is not just the national news but also the region and city-specific channels (Sahara Samay Mumbai, Sahara Samay Bihar & Jharkhand, Sahara Samay Madhya Pradesh & Chattisgarh, and Sahara Samay Uttar Pradesh & Uttranchal and Sahara Samay NCR) that are struggling to stay profitable.

    According to the source, Ernst & Young has recommended a revamp of the business in the areas of operations, ad sales and content. Each channel should have a business head whose role should be properly defined, the consulting firm has suggested. The operations should also be streamlined and structured for more efficient running.

    Under the existing structure, each of the six channels has an ad sales head who reports to a three-member core committee. Since mid-2006 Sahara has done away with a national ad sales head. The distribution team also reports to this committee.

    “Ernst & Young has made a presentation of its recommendations recently. It has not yet been decided what Sahara would adopt,” the source says.

    Earlier, Ernst & Young had submitted a valuation report on Sahara One Media & Entertainment Ltd, the company that runs the Hindi general entertainment channel Sahara One and the motion pictures business. Later in April 2006, NRI businessman C Sivasankaran acquired 14.98 per cent stake in the company for Rs 1.2 billion.

     

  • Sahara One comes under control of promoters

    Sahara One comes under control of promoters

    MUMBAI: Sahara Group promoters have taken back operational control of Sahara One Media and Entertainment Ltd.

    Seemanto Roy, the younger son of Sahara chairman Subroto Roy, has been made head of the company and CEO Shantonu Aditya will report directly to him.
    Earlier, Percept promoter Shailendra Singh was managing the operations and Aditya was in effect reporting to him.

    “Percept was acting as the representative of Sahara for the Group’s entertainment business. Sahara One employees were involved with Percept. Under the new arrangement, Roy will be directly involved,” a source close to the company says.

    Singh, however, will continue to advise Roy. In an internal circular, the company has communicated the structural change.

    “In order to strengthen the activities of Sahara One, Seemanto Roy will head Sahara One’s business. Shailendra Singh will be the advisor to Roy,” the circular says.

    Incidentally, Subroto Roy’s elder son Sushanto was earlier looking at Sahara’s media and entertainment business.
    Seemanto will also be responsible for setting up Sahara’s film city in addition to Amby Valley housing project, which falls in his portfolio.

    Sahara One runs two TV channels and is also engaged in the movie business.

    The company clocked Rs 2.12 billion in revenues and earned a net profit of Rs 72.27 million for the fiscal ended 31 March 2006.

    According to Singh, direct involvement of the promoters is a progressive move as the company is on a major expansion drive.

    “We continue to be in the same position as strategic advisors. We succeeded in taking Sahara One’s businesses to some level and put a team in place. Now that the scalability of the game is bigger, the direct involvement of the promoters is essential to take Sahara One to the next level,” he adds.

    Percept has completed 11 out of the 15 movies it was to produce for Sahara. “We are ready with the other four, which we will be doing for them,” says Singh, stressing that the relationship with Sahara has not changed much.

    Sahara had entered into a management joint venture with Percept almost two years back to handle its entertainment business.

    The Hindi general entertainment channel needed to be fixed as it was floundering in a genre which had strong players like Star Plus, Sony TV and Zee TV. Special focus had also to be laid on the movie production business.

    Early this year C Sivasankaran’s Aircel Televentures bought 14.98 per cent stake in Sahara One Media and Entertainment Ltd for Rs 1.2 billion.

    Bennett, Coleman & Company Ltd, owners of Times of India and Zoom television channel, also acquired a small stake in the company for approximately Rs 380 million.

  • Sahara to take FCCB route for raising $50 million

    Sahara to take FCCB route for raising $50 million

    MUMBAI: Sahara One Media and Entertainment Ltd has decided to take the foreign currency convertible bond (FCCB) route to raise around $50 million (Rs 2.2 billion).

    “We are in the final stages of documentation for issue of FCCBs. We plan to raise around $50 million,” says a source in Sahara One Media and Entertainment Ltd.

    Earlier the shareholders of Sahara had approved the issue of securities in the international market in the form of FCCBs, global depository receipts (GDRs) or other securities through public issue, private placements or preferential allotment. Sahara had also taken an enabling clause to raise up to $50 million.

    The funds will be deployed for movie production, launch of a music channel, content acquisition for Hindi movie channel Filmy and general entertainment channel Sahara One.

    Sahara has already tied up Rs 1.58 billion by diluting stake to investors. While C Sivasankaran’s Aircel Televentures Ltd. (ATL) has put in Rs 1.2 billion for acquiring 14.98 per cent stake, Bennett, Coleman & Company Ltd (publishers of The Times of India) has invested Rs 378 million for a six per cent equity. Sahara is in the process of issuing a preferential allotment of 322.5 million equity shares to ATL with a face value of Rs 10 each at a price of Rs 372 per share.

    Sahara is also in talks to rope in a strategic investor. After divesting stake to ATL, the promoters holding in Sahara stands at 73 per cent. While Bennett, Coleman and Company’s holding is a little less than six per cent, the balance is with the public.

  • Sivasankaran buys 14.98 % in Sahara One for Rs 1.2 billion

    Sivasankaran buys 14.98 % in Sahara One for Rs 1.2 billion

    MUMBAI: If the news and radio space swung into acquisition mode early this year, it is the other areas of media business which are now attracting investors. NRI businessman C Sivasankaran is pumping in Rs 1.2 billion to acquire 14.98 per cent stake in Sahara One Media & Entertainment Ltd.

    Indiantelevision.com had earlier reported that Sivasankaran was in talks to put in around Rs 1.2 billion for a minority stake in Sahara One. Ernst & Young had valued the company at Rs 7 billion.

    Sahara One will make a preferential allotment of 32,25,000 shares (of Rs 10 each) at Rs 372 per share to Aircel Televentures Ltd (Sivasankaran’s company). With this divestment, the promoters will hold 73 per cent, according to a Sahara Group spokesperson.

    BCCL’s (Times Group holding company Bennet Coleman & Co Ltd) stake will be less than 6 per cent and Aircel Televentures will have 14.98 per cent while the rest will be with the public.

    “Aircel Televentures has recognized the potential of the movies and TV business in which Sahara One operates and agreed to invest. The funds generated through this move will be utilised in expanding our business in movie and television business,” the spokesperson said.

    The Sahara One board has approved the proposal of issuing the equity shares to Aircel Televentures on preferential basis. The board, which met today, has also called for an Extraordinary General Meeting of the company on 8 May. The shares will be issued subject to shareholders’ approval.

    Sahara is also planning to raise up to $50 million, for which it has obtained an enabling resolution. “Sivasankaran’s investments will be used for expanding the business. We also plan to raise up to $50 million,” a company executive said.

    Sahara is launching a music channel, adding up to a bouquet of general entertainment and movie channels. Sahara Group also owns a string of news channels.

    Sivsankaran’s first media investment was in ETC Networks where he held 40 per cent stake. He went on diluting equity and exited from the company which was later acquired by Zee Telefilms.

  • Sahara in Rs 1.5 billion expansion plan; to bid for Abu Dhabi series

    Sahara in Rs 1.5 billion expansion plan; to bid for Abu Dhabi series

    MUMBAI: Sahara One Media and Entertainment Ltd is planning to raise Rs 1.5 billion to meet its expansion plans. The company is also likely to bid for the cricket telecast rights for the two-match India-Pakistan Friendship Series to be held in Abu Dhabi.

    The board of directors will meet tomorrow (5 April) to decide on these issues. “Sahara One is looking at getting an enabling clause to raise Rs 1.5 billion. Among other things on the agenda is the approval to bid for the cricket rights,” said a source close to the company.

    Sahara’s media and entertainment business has been valued by Ernst & Young at Rs 7 billion, sources said. The company had appointed the consulting firm to conduct the valuation exercise.

    Sahara One Media and Entertainment is in talks to rope in investors. Recently, Bennett, Coleman & Company Ltd (publishers of Times of India and the Group is 74 per cent stakeholder in Times Now news channel) picked up six per cent stake for Rs 378 million in the company (Indiantelevision.com was the first to report that Bennett, Coleman would buy stake in Sahara One).

    NRI businessman C Sivasankaran is in talks to put in around Rs 1.2 billion for a minority stake into Sahara One. “He is sitting on the fence,” said the source. Having sold Aircel for $1.08 billion to Malaysia’s Maxis Communications, he is flush with funds. His first media investment was in ETC Networks where he held 40 per cent stake. He went on diluting equity and exited from the company which was later acquired by Zee Telefilms.

    Sahara is launching a music channel, adding up to a bouquet of general entertainment and movie channels. Sahara Group also owns a string of news channels.

    Sahara has already experimented with cricket telecast of the India-England series on its Hindi general entertainment channel. Using the event, Sahara One has encrypted and expanded the reach of the channel.

    For the Indo-Pak Friendship Series, the contract for ground rights has been bagged by PDM International, a Percept Holdings company, from the Board of Control for Cricket in India (BCCI) with a bid of $ 3.61 million. Incidentally, Percept has a management contract to handle Sahara’s entertainment business.