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Rediff News  All News  » Business » Nimbus to sell 25% for $125 million

Nimbus to sell 25% for $125 million

December 15, 2006 09:32 IST

Nimbus Communications has agreed to sell a one-fourth stake to an international media giant for $125 million (Rs 562 crore), valuing the company at Rs 2,250 crore (Rs 22.5 billion).

Both the companies will announce the deal, which will be the largest investment by a foreign company in Indian media, in early January.

The foreign company will pick up the stake through a preferential allotment. After the issue, Nimbus chairman and managing director Harish Thawani's stake will come down from 54 per cent to 40 per cent.

The combined shareholding of 3i and Deutsche Bank in Nimbus will come down from 40 per cent to 30 per cent.

The proceeds of the preferential issue will be used to fund Nimbus' plan to float channels and foray into video-on-demand. The new channels will be addition to the company's three proposed channels, which are to be called NEO SPORTS.

When asked whether the foreign company was Rupert Murdoch's News Corp, the source replied in the negative.

Nimbus stole the limelight this year by winning the four-year global cricket rights for $612 million from the Board of Control for Cricket in India.
Kausik Datta in Mumbai