Zee Multimedia Set To Raise $125m

Zee Multimedia, the Mauritius-based holding company for the Subash Chandra-promoted Zee group of companies, is finalising plans to raise Rs 525 crore ($125 million) high-risk foreign debt in the form of an unsecured non-recourse issue to fund expansion plans.

The issue, the first and biggest by an Indian media baron was to open in May, but plans had to be altered due to the nuclear blasts in Pokhran.

The issue is now being scheduled for end July-beginning August. The proceeds from the issue will be used to launch two new Hindi channels, for Indian viewers in United States, to be beamed through the Echo Star satellite.

 

The country's premier Hindi media group also proposes to launch an English channel in India targeted at the affluent Indian population. The group proposes to source its programming for this channel from United Kingdom, United States and Australia. The group also plans to launch an all new premier movie channel covering the south Asian sub-continent. The channel, a first of its kind will be featuring first time Hindi movies as early as six months after their release in India.

Zee also proposes to use the issue proceeds to develop and acquire additional Hindi and other Indian language channels in an attempt to enhance its India presence and reach.

The Zee network is a group of affiliated companies owned and controlled by Subash Chandra and members of his family, who also control the Essel group, a diversified business company in India.

Subash Chandra and associates control the Essel group and Zee Multimedia Worldwide. The Essel group has in turn promoted Zee Telefilms which produces and acquires original programming for the Zee Network.

Zee Telefilms in turn has promoted Siticable with a distribution network to 2.5 million Indian viewers, Ambience Space Sellers which sells advertising spots for all Zee channels in India on commission basis, and Patco which produces and acquires original programming for Zee Network.

Zee Multimedia in turn has promoted Asia Today Ltd, a 50:50 joint venture with the Murdoch promoted News Corp, which broadcasts Zee TV, Zee India and Zee Cinema to south Asia.

Zee Multimedia's other subsidiaries include International Businesses, which broadcasts as Zee TV to UK, Europe, Africa, and United States, and sells South Asian programming in countries not covered by Zee Network.

Besides, Zee Multimedia also owns Expand Fast Holdings Ltd, which broadcasts Music Asia, besides the company will telecasts the network's all English channels and premier movie channels to the sub-continent.