MUMBAI: Malaysia-based Astro will pick up equity in Sun TV Network Ltd’s subsidiary company South Asia FM Ltd (SAFL), says a ministry source.
SAFL, which operates Sun TV’s FM radio stations outside the southern states, is raising capital to fund its business. Sun TV’s stake in the subsidiary company will fall likely by five per cent to 60 per cent.
SAFL has got the FIPB (foreign investment promotion board) nod to increase the foreign direct equity participation. This could be by way of subscribing to fresh equity shares or by way of purchase of existing equity shares or by a combination of both.
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Sun also operates in the southern region through Kal Radio. The company acquired 48.9 per cent stake in Red FM, a move that provided its FM radio business a footprint in the three metro markets of Mumbai, Delhi and Kolkata.
The FIPB has also approved Walt Disney Co (I) to run the businesses of home entertainment and printing and publishing in India. The global media major has ended its home video licensing relationship with Excel Home Videos.
“Disney will take direct charge of their home video products and market them in India. The pricing of the DVDs will also be done entirely by them. Disney, however, will use Excel’s distribution network to push its home video products,” a source says.
