Sagansky, Sloan launch $303m Indian venture

Hollywood veterans Jeff Sagansky and Harry Sloan are launching the first US-listed Indian pay TV company after entering into a new venture.

The pair’s investment company, Silver Eagle Acquisition Corp., has partnered with Indian pay TV provider Videocon d2h to create the firm.

Silver Eagle last year raised US$325 million to invest in international media companies.

As a result of this latest deal, it will pay US$303.7 million in cash for a 33.5% stake in Mumbai-based Videocon dh2, which is part of the Videocon Group. The resulting share issue will be represented by American Depositary Shares.

Silver Eagle’s stake could be as high as 38.6%, depending the number of shares stakeholders choose to redeem. This would mean the firm ultimately paying up to US$375 million.

Videocon d2h’s current shareholders will also be entitled to additional shares up to a total of 3.88% providing the firm hits certain financial targets over a three-year period.

Videocon d2h distributes more than 500 channels across its platform having launched a direct-to-home broadcast venture in 2009. It claimed to have a gross subscriber base of 11.8 million and a market DTH share of 16.5%, as of September 30, 2014.

“We created Silver Eagle for the purpose of finding a fast-growing media opportunity which is taking full advantage of the digital revolution,” said Sloan (pictured), who was CEO of MGM between 2005 and 2009. “With almost ten million digital subscribers, this well-managed company has passed the inflection point to become a leader in India’s explosive television growth.”