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Zee interested in global strategic partner

Priya Ganapati in Bombay

Zee Telefilms will invite a global strategic partner, in the form of an international media major, to pick up a stake in the company. The company is currently in the process of short listing investment banks that would help finalise on the strategic partner.

Zee hopes to complete the entire process in three to four months. However, despite persistent queries, Zee chairman, Subhash Chandra Goel refused to reveal any details on how much stake would be divulged to the strategic partner.

"We are yet to work out those details. The percentage of stake depends upon the strategic partner we select and it will be a mutual decision. We have not yet thought of any particular limit," he said.

Currently, the promoters of Zee Telefilms hold 60 per cent, foreign institutional investors 19 per cent, domestic financial institutions 7 per cent, while corporates and individuals hold the rest.

Zee will decide on the investment bank that will handle the sale over the next ten days.

"We want a strategic business partner that will bring synergies and can distribute our products globally. This may sound a departure from our earlier policies but we are looking at the global trends and we believe that this move will strengthen the company greatly," Subhash Chandra said.

Zee is looking for two qualities in its partner. One, the ability to bring technological capabilities that can propel Zee to the next level and two, an access to the global market for distributing its products from India.

Despite his earlier stormy relationship with Star TV, Subhash Chandra did not rule out the possibility of it or competitor Sony being roped in as a strategic investor. Presently, Star TV holds about 3.9 per cent stake in Zee Telefilms.

"When we have decided on the idea of a strategic partner, then there are no permanent friends or foes in the business. Sure, why not Star or Sony?" Subhash Chandra said.

Zee is also in talks for a strategic partner for SitiCable. However, it ruled out the idea of zeroing in on a common partner for both Zee Telefilms and SitiCable.

"The partnership for Zee Telefilms will be on an international level. It will help us gain access to global markets. But for SitiCable we are looking on the local level," Subhash Chandra said.

Zee Network has a viewership of nearly 200 million viewers across South Asia. Over the last five years, Zee Telefilms limited's total income has grown at 60 per cent to touch Rs 7.8 billion in 2000. In the first nine months of 2000, the company's advertising revenues increased 16 per cent and touched Rs 4.83 billion. However, Subhash Chandra said that the Zee is actively looking at developing subscription fees and syndication of its library programming as alternate revenue streams.

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