ITV

Tag: Udaya TV Pvt Ltd

  • Gemini, Udaya to be merged into Sun?

    Gemini, Udaya to be merged into Sun?

    MUMBAI : The market is expecting founder-promoter Kalanithi Maran to merge the affiliate companies, Udaya TV Pvt Ltd and Gemini TV Pvt Ltd, where he has significant equity interests, with Sun TV Ltd.

    Maran had early this year raised Rs 6.03 billion through a public float of Sun TV which included the Tamil and Malayalam channels. But he kept his popular channels in Telugu and Kannada outside the ambit of the initial public offering (IPO) as they were under separate entities and had other minority stakeholders.
    The speculation in stock trading circles is that the decision would soon be taken to merge the two profit-making companies with Sun TV, offering investors a width of strong channels across the four southern states of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala.

    The rumour comes at a time when Sun TV has made an announcement in the BSE that its board would be meeting on 27 November to “consider the proposed merger of satellite television broadcasting companies.”

    The stock would see a sigificant boost if “these rumours” turn out to be true. “The valuation of the company will shoot up if Gemini and Udaya are merged with Sun. It is not only the topline which will inflate but the bottomline will also continue to be strong,” stock market analysts say.

    Indiantelevision.com’s attempt to reach senior executives in Sun TV to get an official confirmation proved futile. Maran was also not available for comment.

    The equity shares of Udaya TV, as of 7 March 2006, are held by Maran (66.67), S. Selvam (16.67 per cent) and S Selvi (16.66 per cent). In Gemini, Maran has 26.5 per cent, Kal Communication (a promoter Group company), 23.5 per cent, K Bharathi 30 per cent, Indira Anand 16 per cent and A Sai Siva Jyoti 4 per cent.

    Before going for an IPO, Maran consolidated his ownership position by buying out entire stakes of Sharad Kumar and Dayalu Ammal (wife of DMK president M Karunanidhi). Analysts say he will try to do the same thing by buying out the minor partners in Gemini and Udaya before he decides to merge these two companies with Sun TV.

    “We don’t know if he also already bought out the stakes. If he has, the path is clear for him to go ahead with the merger,” an analyst in a brokering firm says.

    What is further fuelling the speculation is that Maran has recently consolidated the Telugu and Kannada channels under the Gemini and Udaya brands respectively. Teja News has been renamed Gemini News and Aditya TV as Gemini Music. Ushe TV, similarly, is now called Udaya Movies.

    Gemini and Udaya already share a business relationship with Sun TV Ltd. For instance, the approvals for uplinking Udaya News, Ushe TV, Aditya TV and Teja News have been granted in the name of Sun TV Ltd.

    Maran also has the option of consolidating Gemini and Udaya’s financials and taking them for an IPO. “This, however, is not what the market is expecting. We believe these two companies will merge with Sun TV to create a media behemoth,” analysts say.

    The Sun TV scrip opened the trading day at Rs 1361.55, reached a high of Rs 1389 and closed at Rs 1363.85.

  • Sun TV to consolidate radio assets in Kal Radio, South Asia FM

    Sun TV to consolidate radio assets in Kal Radio, South Asia FM

    MUMBAI: Sun TV is transferring the existing licenses of its operational radio stations to the subsidiary companies – Kal Radio Ltd and South Asia FM Ltd.

    The company has applied to the ministry of information and broadcasting (MIB) for approval. The plan is to consolidate Sun’s FM radio assets in Kal Radio and South Asia FM, the two subsidiaries who have bid for licenses under Phase II of FM radio expansion.

    Sun’s existing FM radio operations are in four cities. Suryan FM has licenses and operates in Chennai, Coimbatore and Tirunelveli. Udaya TV Pvt Ltd. operates Vishaka FM in Visakhapatnam and has also applied to the MIB for the transfer of the license to Kal Radio.

    Some analysts expect radio operations to contribute to 20 per cent of Sun’s total revenues by FY 2008. Suryan FM generated 9.3 per cent and 8.8 per cent of the total advertising income of Sun TV for fiscal 2005 and nine months ended 31 December 2005. Suryan FM was launched in Coimbatore and Tirunelveli in March and in Chennai in May 2003.

    Sun TV is using the radio vehicle to expand to language markets other than Tamil and Malayalam. It plans to set up and operationalise FM radio stations in 41 cities across the country. Kal Radio has bid for stations like Bangalore and Hyderabad in the southern region while South Asia will operate in the other markets including cities like Pune, Ahmedabad and Allahabad.

    Sun TV will use a major chunk of the proceeds from the initial public offering (IPO) to capitalise the radio business. The company aims to raise Rs 6.03 billion at the top end of the price band at Rs 875 per share.

    Kal and South Asia FM would require an approximate of Rs 1.83 billion towards acquisition of broadcasting equipement (FM transmitters, FM antennas, payment of common infrastructure), setting up of local offices and radio studios. Besides, the inter-corporate deposits provided to the subsidiaries for bidding in Phase II amounted to around Rs 1.55 billion.

    The public issue opens on 3 April and will close on 7 April.

    Sun TV owns 89 per cent in Kal Radio and 94.91 per cent in South Asia FM. Promoter Kalanithi Maran holds 10.5 per cent in Kal Radio and 5.1 per cent in South Asia FM.