SABe TV scouts for strategic partner, to offload 51%

Krishna Gopalan in Mumbai

Sabe TV, a 100 per cent subsidiary of Shri Adhikari Brothers Limited (SABTNL), has appointed Credit Lyonnais as advisor to find a strategic partner. According to reliable sources, the 24-hour Hindi entertainment channel is planning to offload 51 per cent of its equityto the strategic partner.

When contacted by eFE, Markand Adhikari, vice chairman and managing director, SABTNL, confirmed that Credit Lyonnais had been appointed as the advisor. “This will be for the purpose of identifying a partner for a strategic tie-up,” he said. Mr Adhikari maintained that the company was only looking at a ‘strategic tie-up’ and not a partnership that would involve placing equity with the partner. “The arrangement with Credit Lyonnais is in continuation to our old business relationship,” he added.

According to sources, Sabe TV has been going through rough weather for a while. SABTNL’s balance sheet indicates that Sabe TV has posted a loss of US $10,225,194 for the January 2000 to March 2001 period. The channel’s valuation however could not be ascertained at this stage.

Sabe TV, a free-to-air channel, was launched by SABTNL in April last year. Turner International (India) was distributing the channel, but Sabe TV has not paid Turner its distribution fee for the last six months. The two companies are currently in the midst of a legal tangle on the issue. This 24-hour Hindi general entertainment channel offers a mix of programming that comprises sitcoms, soaps, chat shows, mythological and variety entertainment programmes. Sabe TV had also aired Jab Khelo Sab Khelo, a game show hosted by Shekhar Suman. The channel claims it reaches around 22 million homes across the country.

SABTNL had a total income of Rs 97.67 crore for the financial year ended March 31, 2001 and reported a net profit of Rs 10.37 crore.