Sony Pictures to hike stake in MSM to 94% for $271 m
The deal will help MSM to make investments in businesses they want to grow without any promoter constraints. “The Indian promoters were looking to exit for a long time and were waiting for a good valuation,” Manjit Singh, chief executive officer of MSM, told FE. “For MSM, this is a very positive move as it will give us more flexibility in investing in certain businesses which we want to grow,” he added.
SPT will buy this stake from Grandway Global Holdings and Atlas Equifin and expects to close the deal by December, 2012. The payment will be made in tranches. SPT will pay $145 million by December and the rest $126 million in three equal instalments by March 2014.
“SPT has enjoyed great success with its channels in India and this acquisition further demonstrates our commitment to entertaining Indian audiences,” said Andy Kaplan, president, worldwide networks, SPT.
Earlier in the year, SPT had purchased a 30% stake in Hyderabad-based MAA Television Network to venture into the rapidly growing Telegu-television market. “Regional television is one of our major interests and we look to making significant investments there,” Singh said.
Media consultants say that this move will give more financial and creative independence to MSM. “On one
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