Malaysia's Astro Becomes Part Owner of Indian Satellite TV firm, Sun Direct TV
KUALA LUMPUR, Malaysia, April 6, 2007 - Satnews Daily - Malaysian satellite TV provider Astro All Asia Network Plc is taking 20 percent ownership of Indian DTH provider in Sun Direct TV Pvt. Ltd for $166 million. Sun Direct TV will begin providing DTH services to India during the second half of this year.
Astro will acquire its stake through South Asia Entertainment Holdings Ltd (SAEHL), a wholly owned subsidiary. The 20 percent ownership is the maximum permissible under the existing Indian media regulations for foreign direct investment in DTH providers. Astro is expected to fund the buy-in through an existing debt facility of $300 million or through new borrowings. Astro’s joint venture partner is Kalanithi Maran, chairman of the Sun TV Network, one of India's largest TV station operators.
Astro expects the new company to incur losses for the first five years and profit beginning the sixth year, but said India's satellite TV market is expected to add another 150 million households in the next decade. The joint venture expects to begin operations in the second half of the year when transponders on the Insat 4B satellite launched in March become operational.
Astro executive deputy chairman Ralph Marshall said this joint venture is a culmination of the company’s joint initiatives to develop new opportunities in India's fast growing media sector. "It is consistent with our strategy to grow in new markets by creating compelling regional content and developing platforms that would be the preferred provider of entertainment and information services in Asia." Maran said that with this venture, Sun Direct looks forward to a rapid growth in its customer base.
Astro is a subscription-based direct broadcast satellite (DBS) or DTH satellite television and radio service in Malaysia, Brunei and Indonesia. Astro is owned by Measat Broadcast Network Systems, a subsidiary of Astro All Asia Networks plc.
The service was launched in 1996 following the launch of the Measat-1 satellite with an initial offering of 22 television and eight radio channels. Currently, the service consists of 60 TV, 17 radio and four pay per view channels plus various interactive services.
