Kubera invests $22mn in Essel Shyam Comm

The timing of the closing is subject to obtaining regulatory approvals and satisfying other customary closing conditions. The transaction is expected to close by July 2008. This is Kubera's seventh transaction in India.

The initial $17 million KUBC investment takes the form of a primary investment and a  secondary purchase of shares from certain existing shareholders. KUBC will also be issued warrants to invest an additional $5 million in the company.

ESCL was advised by Centrum Capital for this transaction.

The media industry in India is expected to continue its high growth over the next few years with the launch of several new channels. 

In addition, satellite based communications and VSAT are expected to grow with increased government spending. ESCL is well positioned to capture these opportunities.  It is the only company in India with a comprehensive portfolio of services across satellite based communications and broadcasting, and amongst the few in South Asia to have the capability to execute on media infrastructure projects.

ESCL has had an track record of growth with over 35% top line and bottom line annualized growth rates over the last two years.  The company intends to use the funds to expand its teleporting infrastructure to serve its fast growing customer base.

The company will also look for meaningful cross border acquisition opportunities.