Sony Entertainment Television to enter Ca

Sony Entertainment Television to enter Capital Market

Televisionpoint.com Correspondent
Sony Entertainment Television (SET), is exploring the possibilities to enter the capital market, as Sony Pictures Entertainment (SEP), which owns 61 per cent stake in SET, has invited investment bankers to give a presentation in Los Angeles.

Senior officials from investment banks DSP Merrill Lynch, Kotak Mahindra Capital Company, JM Morgan Stanley and others have flown to Los Angeles to give a presentation to SEP.

Although the final nuts and bolts have not been decided as of now and will depend upon the feedback that would be given by these investment bankers, the promoters are looking at market value of about Rs 4,500 Crores or $1 billion. If things go as per the initial plan, the proposed public issue will be a combination of fresh issues of equity shares and offer for sale from the existing shareholders, the issue size is expected to be in the vicinity of $300 million.

The combined shareholding of the Indian promoters is 31 per cent. Indian promoters include the Singapore based banker Rakesh Agarwal, World Media group director Sudesh Iyer, Shemaroo Films managing director Raman Maroo, MobiApps Holding's Jayesh Parekh and actor Jackie Shroff. Capital International owns the balance 8 per cent stake in the company.

SET is looking at divesting about 25 per cent stake in the market, but the actual size will depend upon the market condition. As of now Sony is looking at entering the market some time in September and October, it is learnt.

Interestingly, the biennial ICC Champions Trophy is scheduled to be held in India in October. SET had won the television rights for this ICC event. It may be recalled that Indian partners were at loggerheads with their US partners on the issue of corporate governance. The company has not been able to maintain a high growth trajectory and actually have not been able to improve its earnings despite such a sharp improvement in the advertisement market.

Capital International had acquired nearly 8 per cent stake in SET some time around 2000 at a valuation of $2 billion. The Indian partners were insisting for the listing of the company for quite some time so as to bring corporate governance and introduce transparency in the management of the company.