Zee Entertainment Enterprises Ltd (ZEEL), owned by Diligent Media Corporation, is all set to acquire 9X, the general entertainment channel (GEC) of INX Media owned by media veteran Peter Mukerjea and wife Indrani. The deal is estimated in the range of Rs 60-70 crore, according to sources familiar with the deal.

For ZEEL, the synergies from the deal are unlikely to be significant from a content and viewership point of view, besides an additional channel licence in times of tight government approvals, said sources. INX?s decision to exit 9X comes in the wake of the channel not being able to stand up to stiff competition from its rivals. Currently, 9X has just 1% market share in the Hindi GEC space, compared to Zee?s 18%.

While ZEEL, considered India?s largest media company with over 30 channels under its umbrella, has not confirmed the development, INX has said that the company has a restructuring plan and discussions with ZEEL is part of this process.

On news that Diligent Media Corporation will take over 9X, ZEEL gained 1.55% to close the day at Rs 275.10 on the Bombay Stock Exchange on Monday.

INX Media, was floated in early 2008 with 3 channels, NewsX- a 24-hour English news channel, 9X and 9XM, a music channel. The music channel took off well and has carved a niche for itself. INX Media had raised over $170 million (around Rs 782 crore) from a clutch of investors including Singapore?s Temasek Holdings, New Silk Route, Kotak Private Equity and New Vernon PE. In January 2009, INX sold NewsX to Indi Media run by entrepreneur Vinay Chhanlani and journalist Jehangir S Pocha.

Meanwhile, Bhupendra Makhi, vice-president finance ?INX Media said, ?INX Media is working on a restructuring plan. Part of this initiative includes continuing and growing the music and other niche genres and discussions with the company?s creditors to come to a settlement on outstanding dues. Discussions with ZEEL is part of this process.?

9X owes around Rs 100 crore to creditors, who are expected to give the green signal to the transfer of ownership.

According to reports, the INX management is expected to pitch in with some money of their own over and above the Zee funds to seal the deal with the creditors, who are expected to agree considering the options they have. INX is then expected to spin of 9X, which will be taken over by ZEEL after a court approves the arrangement.