Date:15/09/2005 URL: http://www.thehindubusinessline.com/2005/09/15/stories/2005091502520200.htm

Back Shyam Cellular to sell 7.95% in NDTV to General Atlantic at Rs 116 crore

Ambarish Mukherjee

New Delhi , Sept. 14

SHYAM Cellular Infrastructure Projects Ltd's agreement to sell its 7.95 per cent stake in New Delhi Television Ltd (NDTV) to General Atlantic LLC has been valued at Rs 116.06 crore, informed sources said.

The company would sell 48,36,000 equity shares of NDTV having a face value of Rs 4 each to General Atlantic's European subsidiary GA European Investments Ltd at a price of Rs 240 per share, accounting for 7.954 per cent stake in the company.

Shyam Cellular has sought Government permission for the transaction, officials said. The company had acquired these shares through open market purchases, sources said.

Meanwhile, NDTV's proposal to transfer 15 per cent stake held by the promoters Mr Pranoy Roy and Ms Radhika Roy to their non-resident daughter is still pending with the Foreign Investment Promotion Board.

The FIPB has sought clarification from the Ministry of Information and Broadcasting regarding permissible limits of foreign holding and their categories.

According to information available on the shareholding pattern, the promoters hold 54.78 per cent and the transfer of shares to their NRI daughter will bring down their holding in the company to 39.78 per cent. The foreign shareholding of the company now stands at 3.05 per cent, but would go up to 18.05 per cent after the transfer.

Further, with General Atlantic buying another 8 per cent stake, the total foreign holding would cross the permissible 26 per cent.