TV18 may offload 10% in Viacom18 to JV partner

MUMBAI: Raghav Bahl-promoted TV18 may offload 10 per cent of its stake in Viacom18 to its joint venture partner, Viacom.

With this, TV18‘s stake in the joint venture will come down to 40 per cent. Viacom18 runs general entertainment channel Colors, youth channel MTV, kids channel Nick and also houses Viacom18 Motion Pictures.

"TV18 may exercise its option to dilute 10 per cent in Viacom18," a source familiar with the development said.

Bahl could not be contacted for his comments till the filing of this report.

TV18 has a put option in Viacom18 exercisable from 1 July 2012. The put option gives TV18 the right to sell 10 per cent of the company to Viacom each year for a period of five years.

TV18 can retain management control till it retains 40 per cent or more in Viacom18.

Viacom18 had posted a net loss of Rs 284 million for the second quarter of the fiscal ended 30 September 2011. Ebitda loss was at Rs 77 million.

For the full fiscal ended 30 March 2011, Viacom18 had posted a net profit of Rs 850 million. The income for the fiscal was at Rs 11.04 billion, while expenses were at Rs 9.85 billion. Ebitda for the fiscal was at Rs 1.20 billion.

TV18 has a net debt of Rs 6.84 billion as of 30 September.