HDIL to enter broadcasting
Real estate major HDIL is making a foray into the media and entertainment sector by acquiring entities that operate Hindi news and regional channels.
It will acquire a 51% stake in Broadcast Initiative Ltd, promoted by Sri Adhikari Brothers.
HDIL will also buy a majority stake in Technocraft Media Pvt Ltd (which will begin broadcasting a Bhojpuri channel) and Sri Adhikari Brothers Media.
Rakesh Kumar Wadhawan, chairman, HDIL Group, said the acquisition is part of the group’s long-term strategy of becoming a significant player in the fast growing media and entertainment space.
“This will prove to be an ideal entry point for the group because of the vast media experience of Adhikari Brothers. The companies run the national Hindi news channel Live India and a Marathi channel Mi Marathi, which is close to the heart of the Marathi Manoos.”
Wadhawan added that in the future, the plan is “to create a bouquet of regional news and entertainment channels and to become a leading media conglomerate by entering into other assets such as film production, distribution, studio facilities, etc.”
HDIL Group will complete the acquisition through a mix of preferential issue of shares, equity purchase from existing promoters and a subsequent open offer under Securities and Exchange Board of India guidelines.
Adhikari Brothers will retain a balance shareholding, which may be up to 24% post completion of the transaction.
Shri Adhikari Brothers is an old player in the television content business and HDIL’s controlling stake in the entity would allow it to scale up and diversify operations to produce formats in various languages.
Markand Adhikari, vice-chairman and managing director, Broadcast Initiative, said talks are on “to enter the film production and distribution business in a big way.”
“The media is a capital intensive business, and the deal (with HDIL) will allow us to cope with increasing competition in the national and regional broadcasting segment,” he added.
