Mumbai, March 14: Sri Adhikari Brothers Television Network Ltd (SABTNL) will sell the SAB TV brand and a part of its library programmes and related assets to SET Satellite (Singapore) Pte Ltd for $13 million (Rs 57 crore).
The company is also entering into a programming arrangement with SET India for content supply worth Rs 75 crore.
SAB will focus on content production, which has been identified as its core competence. The deal will not affect the equity pattern or management of the listed entity, the company said.
SABTNL today said SET Singapore, which owns Sony Entertainment and Max channels, will acquire the SAB TV brand and 1,305 hours of library programmes representing 20 per cent of over 6,500 hours of library strength of the company.
Tangible assets like land, building, machinery, equipment and intangible assets mainly of over 5,200 hours of library programmes, representing 80 per cent of the existing library strength, will remain with SABTNL.
According to the company, the proceeds of this deal will be used to create and upgrade the infrastructure required for content production business like studios, production and post-production facilities, unit for animation programmes, to acquire key talents and to expand the content opportunity in the international markets among others.
The move is expected to help the company aggressively tap the rapidly growing demand for content by various channels.
SABTNL added that group companies will launch a current affairs and news channel called Janmat and a Marathi channel, Mi Marathi, by May this year. SABTNL will provide exclusive content to both channels.
On the BSE today, shares of SABTNL fell to an intra-day low of Rs 106.40 after the announcement as investors expressed their disappointment over the deal amount.
The scrip opened at Rs 116 and closed at Rs 108.30, weak by Rs 6.70 compared with its last close. The counter saw 14.29 lakh shares being transacted, resulting in a turnover of Rs 16.48 crore.
With the deal in place, SABTNL will compete with majors like Balaji Telefilms and UTV Software Communications, which had recently floated an initial public offering in the content space.
