In 2004, a similar proposal but involving different foreign promoters was also rejected by the government. According to the current proposal sent to the foreign investment promotion board (FIPB) a few months back, B4U TV network wanted to offload around 6% stake worth Rs 36 crore to its foreign promoter LMB Holdings Mauritius. The Mauritius-based LMB Holdings currently hold around 86% in B4U TV network. Post government approval, its holdings would have gone up to 92%. However, sources said the company failed to furnish the details sought by the department of revenue (DoR) in December leading to the rejection. The DoR is understood to have sought details of the foreign promoter including the source of foreign funds.
As the funds are essential to meet the company's expansion plans, it may re-apply to the FIPB soon, sources said. According to the cable industry sources, the B4U channels have been struggling to get viewership on the DTH and cable platforms and its shows get low ratings.