Time Warner to acquire NDTV Imagine

Time Warner Inc said that it will acquire NDTV Imagine Ltd. from NDTV Networks Plc, an indirect subsidiary of NDTV Ltd., for US$126.5mn (about Rs5.92bn). "The acquisition will be made by Turner Asia Pacific Ventures, a Time Warner company, and Imagine will become a key part of Turner's operations in the Asia-Pacific region," Time Warner said in a statement. Imagine is one of the leading Hindi general entertainment channels and also owns other entertainment assets in India. Turner Asia Pacific Ventures Inc. will get around 92% stake in Imagine. The remaining 8% stake in Imagine will be held by the current management, participants in its employee stock ownership plan and NDTV Networks Plc. After the deal closes, Imagine will continue to be led by Sameer Nair as CEO. Turner Asia Pacific will invest US$76.5mn for 87.4% stake in Imagine from NDTV Networks Plc and another minority shareholder. However, it did not disclose how it intends to acquire the remaining 5%. Turner Asia Pacific would also put in a further US$50mn as primary capital infusion to fund business. NDTV Chairman Prannoy Roy said, "NDTV Group will be in a position to be cash-surplus and debt -free on a consolidated basis." The sale by NDTV would also mark the conclusion of restructuring of its subsidiary, NDTV Networks Plc, Roy said.