Zee Telefilms acquires 50% stake in Ten Sports

New Delhi, Nov 13 (UNI) Zee Telefilms Ltd today said it has acquired a 50 per cent stake in Dubai-based Taj Television's Ten Sports channel for an undisclosed amount.

The investment is based on an enterprise value of Rs 513 crore, according to Zee, which will have a majority representation on Taj TV's board with an option to buy the remaining stake in Ten Sports after 2009.

''The acquisition of a stake in Ten Sports not only gives us a strong foothold in the arena of sports broadcasting across Asia but also strengthens our operations in West Asia,'' Zee Telefilms Chairman Subhash Chandra said.

In the two-part deal, Zee Sports will buy 50 per cent of Taj TV Ltd, Mauritius, while Zee Telefilms will buy 50 per cent in the distribution arm, Taj Television India Pvt Ltd.

The financial statements of the Abdul Rahman Bukhatir-owned Taj Television would be consolidated in Zee's books.

Taj TV is expected to have an average annual revenue of 50 million dollars for the next three fiscal years, Zee said.

Ten Sports, headquartered in Dubai Media City, is one of the leading sports channels in India and has rights to major cricket properties like Pakistan Cricket Board, Sri Lanka Cricket Board and the West Indies Cricket Board.

Ten Sports also has rights to the UEFA Champions League, WWE, US Open, Hockey World Cup, which rate amongst the most popular programmes in India.

Zee Sports also has the rights to Indian football, Davis Cup, WTA, Italian Series A.

''Zee Sports and Ten Sports will be able to draw significant amount of synergies from each other in operating in the Asian market place. This move would consolidate the number of sports broadcasters in India, thereby bringing about a price correction in the burgeoning rights fees for various sports properties, Mr Himanshu Mody, Business Head, Zee Sports said.

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