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Tag: ETC Networks

  • ETC share buyback programme: SEBI exempts Zee from making open offer

    ETC share buyback programme: SEBI exempts Zee from making open offer

    MUMBAI: The Securities and Exchange Board of India (SEBI) has paved the way for repurchase of shares by ETC Networks Ltd. The market regulator has granted exemption to Zee Telefilms Ltd. (ZTL) and Asian Satellite Broadcast Pvt. Ltd. from making an open offer regarding increase in their voting rights from 54.42 per cent to 58.73 per cent.

    “Pursuant to the said increase in voting rights, there would not be any change in control of the target company (ETC Networks). The application seeking exemption was forwarded by SEBI to the takeover panel. The panel recommended for exemption to the acquirers from making an open offer,” SEBI says in a release.

    ZTL and Asian Satellite Broadcast (referred to as ‘the acquirers’) are the promoters and collectively hold 54.42 per cent in ETC.

    “The repurchase of shares by ETC is aimed at increasing shareholder value. We plan to exercise the buyback programme after getting the necessary approvals,” says Essel Group CEO of corporate strategy and finance Rajiv Garg.

    ZTL and Asian Satellite Broadcast (holding company of the Group) had, on 13 June 2006, filed an application with the SEBI. “ETC Networks has announced to buy back up to 10 per cent of its total paid up equity capital and free reserves at a price not exceeding Rs 62 per share in compliance with the provisions of sections 77A and 77AA of the Companies Act 1956 and provisions of SEBI (Buy-Back of Securities) Regulations, 1998. In view of the said buy back, the holding of the acquirers would increase from 54.42 per cent to 58.73 per cent of the total paid up capital of the target company. As the shareholding of the acquirers would increase beyond 55 per cent of the issued capital of the target company, the acquirers have sought exemption from the provisions of Chapter III of the Takeover Regulations,” the letter said.

    The aim of the share repurchase programme is reduce the paid up share capital and improve earnings per share (EPS). This will be beneficial to the shareholders in the form of higher dividend pay out and increased EPS.

  • Media stocks plunge as Sensex sheds 452 points

    Media stocks plunge as Sensex sheds 452 points

    MUMBAI: Media stocks crashed along with the benchmark Sensex Index which shed 452.80 points to close the day at 10,938. Pulled down by brokers who sold heavily to cover margin requirements and foreign funds to reduce their exposure in the derivatives market, the negative sentiment was also visible in the Nifty Index which ended at 3279, down 109 to previous close.

    The major media scrips which recorded a two figure drop include HTMT, Adlabs, Zee Telefilms, Sun TV Ltd, NDTV, Saregama, TV18, Galaxy Entertainment, Gemini Communications and Navneet Publications.

    HTMT took the deepest plunge, going down by Rs 48.30 to close at Rs Rs.701.75 at the Bombay Stock Exchange (BSE). Sun TV also stood weaker, recording a fall of Rs 38.25 to close at Rs.1192.35. Adlabs went down by Rs 26 to close at Rs 271.45 while NDTV ended the week at Rs 220.00, falling by Rs 21.10. Gemini Communications recorded a drop of Rs 22.8 to touch Rs Rs.433.30.

    TV 18 went down by Rs 19 .35 to close at Rs 636.15, while the Zee TV stock dropped by Rs 15 to end the week at Rs 229.60. Navneet Publications recorded a fall of Rs 15, to close the week at Rs 304.30. The Saregama scrip shed Rs 11.35 to touch Rs 250. Galaxy Entertainment went down by Rs 13.55 to end the week at Rs 268.

    Other important media scrips which saw the red at the week’s close included UTV, BAG Films, Mid Day Multimedia, K Sera Sera, Pritish Nandy Communications and ETC Networks.

    Stock analysts feel the Sensex is undergoing an overall valuation adjustment. “The correction in the valuation of media stocks is in line with the stock market crash which fell around 11 per cent in the week. There is no unusual reason to worry about the media stocks,” says ING Vysya fund manager Manish Bhandari.

    So will the fall continue? “The sensex has already lost heavily. It may further dip by about 3 per cent. But a heavy fall like this is definitely ruled out,” says Bhandari.

    The media scrips which bucked the trend are TV Today Ltd and Balaji Telefilms. Both recorded minimal gains of Rs 1.35 and Rs 0.75 respectively. “Balaji’s strong fourth quarter result has protected the scrip’s fall,” adds Bhandari.

  • 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.