Zee Telefilms, Asia Today Beam Merger Signals

Subhash Chandra-promoted Zee Telefilms (ZTL) and the holding company for the Zee Network, Asia Today Ltd (ATL) may be merged.

Speaking at the EGM of the company on Tuesday, ZTL chairman Subhash Chandra said a plan was being worked out to align his interest in media companies with the interest of ZTL shareholders. He mentioned that he holds 50 per cent in the Hong Kong company (ATL) and 100 per cent in the European and US companies.

When asked whether this will lead to merger of ATL and ZTL, Chandra said, "It is premature to comment on this."

A senior ZTL official told Business Standard that the proposed realignment may lead to a merger at some future date. "However, a decision on this will be made only after the Broadcast Bill is put in place," he added. ZTL supplies software to ATL, which is a 50:50 joint venture between Chandra and media baron Rupert Murdoch.

 

Chandra said uplinking from India is not possible as it is not permitted under the law. ZTL managing director, Vijay Jindal pointed out that uplinking from abroad is also more economical.

Sales from advertisement bookings of ZTL increased by 47 per cent in the first three months of 1997-98. Chandra said that revenue from export of programmes had increased by 38 per cent to 25.91 crore from Rs 18.75 crore. Earlier, shareholders unanimously approved the hike in investment by FIIs to 30 per cent from 24 per cent. Jindal said that the proposed cap on foreign equity applied to broadcast companies and, therefore, ZTL - which was only a software provider - was exempt from it.