South Korea’s GS Home Shopping, the world’s third largest home shopping network (as per this release), will invest $18.5 million in HomeShop18, a Network18 subsidiary. GS will hold 15% stake in the company post the investment. Parent Network18 will invest $5 million and will continue to be a majority shareholder with a 51% stake post dilution. GS’ investment values HomeShop18 at $123 million.
Saif Partners holds a 30% stake in the company.
The partnership also entails strategic cooperation in the areas of sourcing, merchandising, broadcasting and logistics. GS will post key employees at HomeShop18 and will also train HS employees in Korea.
Another South Korean network, CJ Home Shopping, had forged a JV with Star India for a home shopping channel. It is yet to go on air.