Malaysia’s Astro tunes to Sun FM, picks 7%

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Chennai, Jan 14: After picking up a 20% stake in Sun TV Network’s DTH arm - Sun Direct - for a consideration of close to $150 million, Malaysia-based Astro, a multi-billion dollar diversified group owned by T Ananda Krishnan, has picked up 7% stake in Sun TV Network’s FM Radio arm - South Asia FM Ltd (SAFL) for an undisclosed amount. The deal is expected to conclude in the next 15 days, sources close to the development told FE. Post sale, Sun TV’s stake in SAFL will be at 64.12%. Despite repeated attempts, company officials declined to comment.

Sun Network, which holds licences for 45 FM radio stations across the nation, has rolled out 18 FM stations through its subsidiaries - SAFL and Kal Radio, In the last one year alone, the company rolled out more than a dozen FM radio stations and will be one of the largest radio broadcasters in India when all the remaining 27 stations become operational. SAFL has licences for 23 stations across the country other than all the southern states (TN, Karnataka, Andhra Pradesh and Kerala).

In August 2007, Red FM, promoted by NDTV group along with two others picked up a 35% stake in SAFL. In return SAFL took 48.9% stake in Red FM, which has business in the north, west and east Indian markets. The latest move is aimed at expanding its presence across the country in a more aggressive manner, analysts said.

It may be recalled that early last year Mauritius-based Astro group, through its arm South Asia Entertainment Holdings Ltd (SAEHL), picked up 20% stake in Sun Network's DTH (direct-to-home) arm Sun Direct for a consideration of $150 million.

According to sources, Astro is owned by T Ananda Krishnan, a business tycoon in Malaysia. Krishnan's businesses include Maxis, a leading telecom company in Malaysia, which acquired majority stake in Chennai-based private mobile operator Aircel two years ago for over $1.2 billion.