GECs
Sumangali in talks to acquire RPG Netcom
MUMBAI: Sumangali Cable Vision is on the prowl. The Chennai-based multi system operator (MSO) is in talks to acquire RPG Netcom, a move which coincides with Sun Network’s plans to launch a Bengali channel ‘Surjo’ this April.
Sources say RPG Netcom, the dominant MSO in Kolkata, has given the mandate to Ernst & Young to find a buyer. The buzz is that Deloitte is carrying out the due diligence on behalf of Sun Network.
Neither companies were willing to talk about the negotiations. When contacted, Vittal Sampadakumaram of Sumangali Cable Vision declined to comment. RPG Netcom CEO Amit Nag also said he was not in a position to comment on the issue.
RPG Netcom has been trying to find an equity partner for the last few years. The negotiations with Star India broke down after the government passed legislation on the conditional access system (CAS). Star’s argument was that CAS would require huge capital infusion while there was no estimate on the cash earnings that would come into RPG Netcom.
RPG’s disadvantage is that it has very few direct points and, like the other MSOs, has little control over its last mile operators. Besides, the scope to offer value-added services in West Bengal is limited.
So why is Sun Network’s Sumangali Cable Vision showing interest? Analysts believe the acquisition of RPG Netcom will provide Sumangali an entry strategy while Surjo channel will get distribution support.
The talks were initiated over a month ago and RPG Netcom officials went to Chennai for discussions. Sumangali officials, according to a source, have also visited the RPG Netcom office for further talks.
Sun Network is planning to move out of its traditional southern bastion to reach out to a pan national market. Kalanidhi Maran has already announced plans to launch a Hindi channel in 2006. So it would be logical to expect Sumangali to make a similar march outside the south into other markets after it has breached “Bangla land”.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
