SCPE, Providence bid for stake in Indian broadcast giant

MSM, which was previously known as Sony Entertainment Television India, is 61% owned by Sony Corporation, which does not appear to be providing the crux of the shares to the PE consortium.

According to domestic reports, the private equity funds will acquire the aggregate shares from Indian investors, who are said to hold approximately 30% of the company. Capital International, which has a reported 8% stake in MSM, and Sony may also divest shares to SCPE and Providence to make up the remainder of its 35% target.

Overall, the deal may value MSM at $800-900 million. MSM is the broadcaster of television channels Sony TV, SET Max, SAB TV, Sony Pix, AXN and Animax - accounting for 15% of the Hindi entertainment space, the Business Standard adds - and the fresh capital would be used to bolster its programming capabilities.

The news comes three years after MSM's local shareholders first sought an exit from their investment, which has not been achieved due to valuation difficulties.

MSM is also said to be nearing the acquisition of 11 regional channels from Eenadu TV (ETV), for more than INR25 billion. That deal would mark the largest media deal in India recent times, the Standard noted.

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• Topics
• South Asia
• Media
• Standard Chartered Private Equity
• Providence Equity Partners