Nimbus Comm To Sell 26% Stake; Aims For A $550 Million Valuation

Nimbus Communications is expecting $140 million for a 26% stake sell, valuing the diversified media firm at a very respectable $550 million. ET quotes Vice-President, Prasana Krishnan, stating that if they choose a strategic investor, they expect to complete the process by March 2009. Stake will be offloaded through a combination of primary issue and a partial sale of secondary shares by financial investors. The valuation, at Rs 2,200 crore, sounds off the mark, even for a diversified media firm like Nimbus. Nimbus had bagged cricket rights for $612 million for all international and domestic cricket to be played in India until 2010, but faced tremendous pressure from Doordarshan for simultaneous broadcast, and post IPL, saw a significant drop in value for their one-day and test broadcast rights. Their digital initiative has just begun while ancillary revenue streams such as DVD stores have been recently announced. As per the report, Nimbus promoter and Chairman, Harish Thawani, will not sell his rumoured 54% stake and is expected to continue holding controlling stake.

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