Zee Entertainment Enterprises Ltd (ZEEL), a leading media and entertainment company, has acquired Odisha based Sarthak Entertainment Pvt Ltd (SEPL), the owners of ‘Sarthak TV’, a general entertainment channel (GEC), at a consideration of Rs 115 crore.
The Board of Directors of ZEE today approved the all-cash deal which has vested 100 per cent equity of SEPL with ZEEL, said the company in a filing to BSE.
“The said acquisition shall be from current shareholders of SEPL, subject to requisite regulatory approvals, as an all-cash deal at a consideration of maximum of Rs 115 crores, including Rs 15 crore payable in FY 2017 and 2018, linked to certain performance milestones of the channel,” the company said.
Launched in 2010, Sarthak TV leads the Odia GEC pecking order. The channel has been successful in creating high quality content catering to the needs of local audience. It airs reality and non-fiction shows besides being the market leader in the fiction segment.
On the acquisition, managing director and chief executive officer of ZEEL, Punit Goenka said, “We are pleased to announce the acquisition of Sarthak as we continue to invest in tomorrow. The acquisition of an already profitable, market leading venture is going to be a value accretive investment in line with our philosophy of enhancing shareholder value. Sarthak will further add to our formidable bouquet of 33 channels in the domestic market.”
ZEELs bouquets of regional channels include Zee Marathi, Zee Talkies, Zee Bangla, Zee Bangla Cinema, Zee Telugu, Zee Kannada and Zee Tamizh.
“It gives us great pleasure to announce that Sarthak will now be a part of India’s leading entertainment network. Being the oldest and market leading network in India, ZEEL would provide the perfect platform for Sarthak to grow further in the future. With a history of successful operations, we are sure Sarthak will be a great value-add for ZEEL,” Sitaram Agrawalla, founder & managing director of the Sarthak group and Raj Thourani, director, Sarthak TV added.