Sony Pictures Television (SPT), a wholly-owned subsidiary of Sony Pictures Entertainment Inc, has said it would acquire an additional 32 per cent stake in Multi Screen Media Private Ltd. (MSM) for $271 million (about Rs.1,510 crore).
Post-acquisition, which is subject to government approval, SPT's stake in MSM that owns channels such as SET and MAX in India, will go over 94 per cent.
“SPT has signed an agreement to acquire about 32 per cent of the shares of MSM, which are owned by Grandway Global Holdings Ltd and Atlas Equifin Pvt Ltd,” the company said in a statement
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The closing for this transaction was expected to take place by the end of December 2012, it said. “Under the terms of the agreement for this acquisition, aggregate cash consideration of $271 million will be paid by SPT to Grandway and Atlas, subject to receipt of any necessary government approval,” the statement said.
$145 million will be paid by SPT at the closing of the acquisition by the end of December, 2012, and the remaining $126 million to be paid in three equal annual instalments starting from the fiscal year ending March 31, 2014, it added.
Commenting on the development, SPT Worldwide Networks, President Andy Kaplan said: “SPT has enjoyed great success with our channels in India and this acquisition further demonstrates our commitment to entertaining Indian audiences.”
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A substantial portion of the impact from this acquisition has already been included in Sony Corporation's consolidated financial forecasts for the fiscal year ending March 31, 2013, and no material impact from this acquisition is anticipated on such forecasts, the statement added.
MSM operates television networks in India and its channels include Hindi general entertainment television channel, Sony Entertainment Television (SET); movies and special events channel, MAX; Hindi entertainment channel, SAB; Hollywood movie channel, PIX, and the recently launched sports channel, SIX.