Neo Sports Broadcasting Pvt Ltd has got approval from Foreign Investment Promotion Board (FIPB), the nodal agency that clears foreign investment proposals, to bring in Rs 258 crore as FDI. The funds have been raised form private equity investors like Oman Investment Fund (OIF) and 3i Sports Media (Mauritius), reports Business Standard. 3i and OIF have earlier invested in Nimbus Communications, which is the parent company of Neo Sports Broadcasting.
The investment is being made through issue of fresh equity shares and equity-linked instruments like compulsory convertible preference shares. The funds will be used by Neo to expand its two existing sports channels. They will also be used to launched two more channels in the lifestyle and films genre.
Nimbus Communications, the parent company of Neo Sports Broadcasting, had raised $125 million from 3i Group, OIF, Cisco (NSDQ: CSCO), Deutsche Bank and Americorp Ventures in one of the largest PE deals in media. Nimbus shot to fame when it bagged the global rights to Indian cricket till 2010.
According to earlier reports, Nimbus Communications was looking to raise over $140 million for a 26% stake, with a valuation of over $550 million. It had appointed UBS as adviser for the deal.
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