TV 9 logo | Wikimedia Commons
A group of investors led by Hyderabad-based Megha Engineering and Infrastructure Limited (MEIL) has signed a definitive agreement to buy out Associated Broadcasting Company Private Limited (ABCL), which owns a bouquet of regional television news
channels under the brand name of TV 9 in Telugu and other languages.
Private equity firm Peepul Capital's co-founder and chairman, Sriniraju (Chintalapati Srinivasa Raju), and his firms own majority stake in the media company while private equity firm Saif Partners and TV 9 CEO Ravi Prakash own the rest of the equity.
Sources close to the development said an SPV set up by the promoters of MEIL, My Home Group and a couple of other investors will be acquiring 100 per cent shares of ABCL for little over Rs 4.5 billion.
"An agreement was signed by the existing shareholders of ABCL and the new investors for the acquisition of TV 9 operations. First tranche payout and other formalities are expected to follow soon," a person who is aware of the transaction told Business Standard on condition of anonymity.
Launched in 2003, TV 9 has been a ratings leader in Telugu language operations while the company is said to be in the profits. It runs 24/7 news
channels in seven languages, including Kannada and Gujarati.