Malaysian-based investor Astro is set to buy 49% stake in Delhi-based NDTV Lifestyle Holding for $40 million (around Rs 180 crore). NDTV-promoted NDTV Lifestyle Holding will infuse the funds in NDTV Lifestyle, the promoter of NDTV Goodtime, the lifestyle channel of NDTV Group. This comes within three months of NDTV calling off its earlier agreement with US-based Scripps Networks Interactive.

According to the agreement announced in November 2009, Scripps Networks was to buy 69% stake in NDTV Lifestyle for $55 million. However, in May, NDTV said that the deal with Scripps did not go through.

Astro’s investment in NDTV Lifestyle has taken the valuation of the promoting firm to $112.5 million (around Rs 500 crore). This is over 40% higher than the $79 million valuation at which Scripps Networks had announced buying 69% stake in NDTV Lifestyle last November. Post government approvals, NDTV Networks, the parent company of NDTV will own 51% in NDTV Lifestyle Holdings, which in turn will own 92% in NDTV Lifestyle, sources said. This would effectively give Astro a 45% stake in NDTV Lifestyle.

Sources told FE that Astro will invest in NDTV Lifestyle Holding through its Mauritius-based subsidiary South Asia Creative Assets Ltd (SACAL). NDTV Lifestyle Holding is said to have approached the FIPB to seek the necessary government approval for the proposed investment by SACAL.

Incidentally, SACAL also picked up 80% stake in celebrity chef Sanjeev Kapoor’s television firm Turmeric Vision last month. Kapoor’s television firm will soon launch a dedicated channel on foods called ‘ Food TV ‘. Experts say, in future ‘Food TV ‘ may align with NDTV Lifestyle as it fits the genre of lifestyle programming.

The working relationship between NDTV and Astro goes back almost five years when the two joined hands to launch a 24-hour news channel for Malaysia and Indonesia called ?Astro Awani?. NDTV took a 20% stake in this joint venture in 2005. Again, in 2006 NDTV and Astro bought minority shares in Red FM, the FM radio brand created by the India Today Group which was bought by Kalanithi Maran’s Sun Network.