Zee to hike stake in Ten Sports

However, the total income of the company has declined to Rs 563.2 crore for the third quarter ended December 31, 2009, from Rs 585.7 crore in the same period previous year, Zee Entertainment Enterprises (ZEE) said in a filing to the Bombay Stock Exchange. "Zee's performance over the last couple of quarters is reflective of its ability to grow viewership and revenues even under difficult market conditions. Now that the economy and sentiments have improved, we will continue building our product portfolio for creating value in the long-term," ZEEL Chairman Subhash Chandra said.

On the standalone basis, the firm posted a net profit of Rs 147.9 crore for the Q3, nearly a three-fold jump from the same period last year. Zee said that "the Board of Directors have approved, acquisition of additional 45 per cent equity stake in Taj TV Ltd, Mauritius, the owners of Ten Sports channel, through its overseas subsidiary (Zee Sports International Ltd Mauritius)," from Bukhatir Group (Bukhatir) for a consideration of USD 44.145 million (about Rs 201 crore). With the said acquisition Zee's stake in Ten Sports would rise to 95 per cent from 50 per cent it currently holds in the company.

Further, the board has also approved the acquisition of the majority stake (100 per cent) in the Indian arm of Taj TV, Taj Television (India), making it a wholly-owned subsidiary of the company. In November 2006, Zee Entertainment through its overseas subsidiary had bought 50 per cent stake in Ten Sports channel, and 50 stake in Taj Television India Pvt Ltd, a distribution arm of Ten Sports in India. Shares of Zee Entertainment were trading at Rs 279.80 on the BSE, down 2.25 per cent from its previous close.