GECs
Zee sets itself 60 days deadline to raise finances
Alarmed by the recent fall in stock prices, dismal Q1 results for the year 2000 – Zee reported a mere 5% increase in the net profits and drop in TRP ratings due to rival channel Star TV’s hugely popular Kaun Banega Crorepati game show, Zee Telefilms is setting itself an ambitious target of raising up to $700 to $800 million over the next sixty days.
The money raised will be used to fund various activities like strategic acquisitions of cable networks and regional channels, digitalisation of its bouquet of existing channels and updating its movie library.
Zee’s flagship MSO Siti Cable is expected to rake in much of the moolah for funding its various operations. Siti Cable, which is one of the biggest cable operators in the country and also a major convergence player for Zee, is expected to be valued at $3 billion. Zee might dilute about 11% in Siti Cable which will bring in $330 million.
According to Business India, Zee is also in talks with Time-AOL as a strategic investor and another global financial powerhouse as a financial investor. Apart from this, Zee will raise additional $400 million through a convertible float of Zee Telefilms.
