Media and entertainment company Time Warner Inc. (TWX) on Wednesday said that its board has approved the acquisition of India-based entertainment channel NDTV Imagine Limited from NDTV Networks Plc, an indirect subsidiary of NDTV Limited.
The acquisition will be made by Turner Asia Pacific Ventures Inc., a Time Warner company, and Imagine will become a key part of Turner's operations in the Asia-Pacific region.
The New York based company noted that Turner is investing a total of $126.5 million, which will result in a 92% stake in Imagine. It includes the secondary purchase of an 87.4% stake in Imagine from NDTV Networks Plc and another minority shareholder, and a $50 million primary capital infusion for the funding of the business at the time of the closure of acquisition.
The remaining 8% stake will be held by the current management of Imagine, ESOP holders and NDTV Networks Plc., noted Time Warner.
Sameer Nair will continue to lead Imagine as chief executive officer after the completion of the transaction. Imagine's existing core team will work in tandem with Turner's senior management, noted Time Warner.
Time Warner said the acquisition advances its strategy to create and deliver popular, high-quality programming to consumers globally.
Imagine joins Turner's diverse portfolio of content across multiple genres in India that include kids' entertainment channels Cartoon Network and POGO, news channel CNN International and English entertainment channels WB, HBO and TCM.
Turner also has several successful partnerships in India with Zee Entertainment and Enterprises Ltd for distribution company Zee Turner Limited, offering the country's largest collection of television channels. It also has partnership with GBN, a TV18 company for the co-branded 24-hour English news channel CNN IBN, and the Alva Brothers for a minority stake in television production company Miditech and a Hindi general entertainment channel, REAL.
BofA Merrill Lynch served as financial adviser to Time Warner on the transaction.
TWX closed Wednesday's regular trading at $30.04, down $0.10 or 0.33% on a volume of $7.82 million shares on the NYSE. In the after hours the shares rose $0.10 or 0.33% trading at $30.14.
For comments and feedback: editorial@rttnews.com