iLabs' exit from TV9 likely next month

The exit of iLabs from Associated Broadcasting Company Ltd (ABCL), which runs the TV9 regional channels, is expected to be completed by March 31, 2012, iLabs owner and city-based venture capitalist Srini Raju has said, adding that it could be as early as January.

iLabs and other investors hold an 80% stake in ABCL, while TV9 CEO Ravi Prakash and others in the management team hold a 20% stake.

Raju said all the investors who are holding discussions for the stake pick-up have a media background.

"The process is on. There are half a dozen companies that are interested and all of them have connections with the media. I signed an agreement with bankers. So they are holding discussions with banks. The exit will be completed before March 31. It could happen in January also," he told PTI on the sidelines of a function at the Indian School of Business here.

iLabs is expecting an up to four-fold return on its investment.

"The overall return is expected to be three to four times (of the investment). It is somewhere in that range. It is not a big return because we have been there for a long time. Nearly eight years," he added.

At present, ABCL operates seven regional channels. It is reportedly planning to launch three new channels in next one year, one for the Delhi NCR region, a Tamil channel and a Telugu entertainment channel.

Raju said iLabs wanted to exit from ABCL in 2008. However, due to the difficult market conditions at the time, they could not do so.