India’s ZEE Entertainment Enterprises is considering increasing its stake in Taj TV, which owns the popular Ten Sports channel in Asia.
ZEE already holds a 50 per cent stake in Taj TV and has the option of increasing its stake by another one per cent and thereby becoming a majority shareholder in the firm.
Punit Goenka, CEO of ZEE, confirmed the developments in Indian newspaper DNA, “We are in talks about the additional stake, but there’s nothing concrete yet.” The Mumbai-based DNA is partly owned by ZEE.
He added that the company’s chairman Subhash Chandra has confirmed to the local press in India that “ZEE is seriously considering the option”, but the board is yet to approve the decision “since it wants the company to negotiate the best price.”
ZEE Entertainment took 50 per cent stake in the Taj TV in November 2006. However, if the option to acquire majority stake is exercised, it automatically triggers an option put by Taj TV for an additional 23 per cent stake. This would require ZEE to buy a total 24 per cent, taking its holding in the Dubai-based broadcaster to 74 per cent.