SABe TV seeks strategic partner
By Alok Agarwal | 16 Oct 2001
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Mumbai: SABe TV, a popular entertainment channel, is desperately seeking a strategic partner and is said to have appointed Credit Lyonnais to help it identify one.
SABeTV, a 100-per cent subsidiary of Sri Adhikari Brothers Television Network Ltd, has been incurring losses since its inception in April 2000. According to the companys financial statements, the subsidiary had accumulated losses of $10,225,194 as on 31 March 2001. Its promoters have been on the look out for a strategic partner for quite some time now, but with little success.
Some time back there were unconfirmed reports that the company has come to an understanding with Reliance Entertainment for a stake sale, which drove its share price to above 100 levels in the bear market. But the managing director of the company, Markand Adhikari, talking with
domain-B said the reports are nothing but rumours.
SABe continues to be a free-to-air channel. It had a distribution agreement with Turner International (India), which had to wind up due to conflicts between the two companies. Sri Adhikari hasnt paid any distribution charges to Turner International and the matter now lies before the judiciary.
Analysts feel one of the main reasons the company couldnt find a strategic partner so far may be because of the low share price of Sri Adhikari Brothers, a factor that could have acted as a hurdle for stake sale. It is noteworthy that Sri Adhikari Brotherss share price has fallen almost 95 per cent from its all-time peak value of Rs 2,400 or thereabouts in line with the general trend so conspicuous for technology and media shares.
SABeTV, a 100-per cent subsidiary of Sri Adhikari Brothers Television Network Ltd, has been incurring losses since its inception in April 2000. According to the companys financial statements, the subsidiary had accumulated losses of $10,225,194 as on 31 March 2001. Its promoters have been on the look out for a strategic partner for quite some time now, but with little success.
Some time back there were unconfirmed reports that the company has come to an understanding with Reliance Entertainment for a stake sale, which drove its share price to above 100 levels in the bear market. But the managing director of the company, Markand Adhikari, talking with
domain-B said the reports are nothing but rumours.
SABe continues to be a free-to-air channel. It had a distribution agreement with Turner International (India), which had to wind up due to conflicts between the two companies. Sri Adhikari hasnt paid any distribution charges to Turner International and the matter now lies before the judiciary.
Analysts feel one of the main reasons the company couldnt find a strategic partner so far may be because of the low share price of Sri Adhikari Brothers, a factor that could have acted as a hurdle for stake sale. It is noteworthy that Sri Adhikari Brotherss share price has fallen almost 95 per cent from its all-time peak value of Rs 2,400 or thereabouts in line with the general trend so conspicuous for technology and media shares.
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