SAB TV to re-structure biz to focus on broadcast, publication

Sri Adhikari Brothers Television Network Ltd (SAB TV) today said it will rejig its business to sharpen focus on broadcast, content and publication businesses.
Favourable market and competitive dynamics have opened up opportunities for the Group to accelerate growth in its various business verticals, the company said in a filing to the BSE.
"Foreseeing the change business would undergo with penetration of Internet and government plans to unleash remote connectivity through digital platform, the Company believes that it is the right time to venture into new age technology," SAB TV Network Vice Chairman and MD Markand Adhikari said.
The broadcasting business will be consolidated into TV Vision Ltd, which will be a wholly owned subsidiary of the company.

"The Board has approved the proposal to demerge and consolidate the broadcasting business housed in the wholly owned subsidiary companies of TV Vision Ltd viz UBJ Broadcasting, HHP Broadcasting Services and MPCR Broadcasting Service into TV Vision...And listing of TV Vision, thereby unlocking shareholder value," it said.
The Board has also approved consolidation of the publication business of the group and subsequent demerger to Marvick Entertainment Pvt Ltd (to be changed to public company), SAB TV added.

The restructuring will result in creastion of two more listed entities where wexisting shareholders would become shareholders in same proportion to their holding in SAB TV.

Shareholders would receive one fully-paid equity share of Rs 10 each of the broadcasting business for every share of SAB TV as well as 10,000 redeemable preference shares of TV Vision.
The shareholders will receive three shares of Marvick Entertainment for 10 equity shares of SAB TV, along with 10,000 redeemable preference shares of TV Vision.
"Additionally, the company would issue 2381068 redeemable preference shares to the equity shareholders of SAB Assets on a proportionate basis," it said.
For FY13-14, SAB TV reported a net profit of Rs 3.6 crore, while its revenues stood at Rs 71.49 crore.
Its shares closed at Rs 120.75 apiece, up 1.3 per cent from its previous closing on the BSE.