Sun TV shines on merger approval

DALAL STREET SPIKES

Sun TV rose 4 per cent though it closed at Rs 1,528 with a marginal gain of 1.1 per cent with 31 per cent increase in volume on the BSE.

The company announced that the board has approved the merger of satellite television companies, Gemini TV and Udaya TV excluding the FM radio division, with itself. Rs 174.69 crore Gemini TV owns five television channels and Rs 94.31 crore Udaya TV owns four television channels.

Sun TV currently operates four television channels in Tamil language, two in Malayalam and three FM radio stations, and another three FM radio stations through its subsidiaries.

The company's shareholders would benefit immensely from the highly profitable operations and strong growth plans of both Gemini TV and Udaya TV. The merger is part of its strategy of building a dominant presence in entire south India.