India's Zee entertainment to buy PE-backed 9X Media

Zee will pay INR1.6 billion ($24.5 million) for 9X and its subsidiaries, including a 29.2% stake in INX Music owned by outside investors, according to a filing. The deal gives Zee control of six music channels and Bollywood new portal SpotboyE. NSR will make a full exit in the takeover, along with other shareholders.

9X was founded in 2006 as INX Media, and NSR initially invested in 2007, taking a collective 60% stake along with Singapore-based Temasek Holdings, New Vernon Private Equity, Kotak Mahindra Bank and SREI Venture Capital. In the midst of ongoing losses INX’s private equity backers tried to exit to Zee in 2010. When that deal fell through NSR bought out Temasek and Kotak and reinvested INR5.5 billion, taking an 80% stake.

9X has continued to struggle throughout NSR’s holding. For the 2017 financial year the company reported INR1.6 billion in revenue, down from INR1.8 billion the year before. Over the same period EBITDA dropped from INR117 million to a net loss of INR51 million.

NSR closed its debut fund in 2006 at $1.38 billion. The most recent investment recorded by AVCJ Research was the purchase in 2013 of a majority stake in Mumbai-based Moshe's Fine Foods. Subsequent to that, there have been various exits, including a transaction last year involving listed logistics business VRL Logistics.

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• Topics
• South Asia
• Media
• Trade sale
• Open market
• India
• NSR New Silk Route Partners
• Exit