TV9 Deal: Srini Raju agrees to pay rs 65 crore to SAIF Fund

HYDERABAD: Venture capitalist Srini Raju has inked a settlement deal with a fund of SAIF Partners that wanted courts to prevent Raju and his associates from selling broadcast media platform TV9 to a Hyderabad-based consortium.On Monday, Raju and associates filed a compromise petition before the National Company Law Tribunal (NCLT), agreeing to pay around Rs 65 crore to the fund of SAIF Partners. In return, the fund agreed to withdraw a contempt petition against Raju and associates within 10 days of receiving the payment.“We have signed a settlement agreement with SAIF and filed it before the tribunal,” Srini Raju told ET.NCLT has asked whether there are any objections to this arrangement, which would allow the sale of Associated Broadcasting Company (ABCL), the operator of the TV9 bouquet of channels. NCLT would hear the case on May 16.Separately, NCLT agreed to look into a petition filed by a new shareholder of ABCL, film actor Sivaji. The actor, who is learnt to have bought around 9% of ABCL from founder chief executive Ravi Prakash, has raised objections to the sale of 82% equity in favour of a consortium of two Hyderabad-based infrastructure groups for around Rs 460 crore.SAIF III Mauritius Company had earlier moved NCLT to prevent the sale of TV9. It claimed that funds it had invested 10 years ago in IVision Media, another firm controlled by Srini Raju, were given to ABCL to help siphon off the money. The Mauritius fund said it had invested Rs 50.37 crore for an 80% stake in IVision Media in August 2008 after an assurance that IVision Media would be merged with ABCL, giving it 14.29% stake in the merged entity. Neither did the merger take place, nor was SAIF provided an exit route.Raju said the deal involves buying the entire stake of SAIF in IVision Media and providing SAIF an exit at around Rs 65 crore.

from Economic Times http://bit.ly/2DFRzo7