While the financial details of the acquisition were not disclosed, a Financial Times report suggests that Hinduja group will be paying off Alfacam’s debt pile of around €24 million (Rs 173.59 crore) and invest an additional capital of €6m (Rs 43.4 crore) into the company.
The PTI report suggests that this acquisition will allow Hinduja group to extend Alfacam’s operations to India and various other parts of the world, while a similar Dealcurry report suggests that this acquisition will enable Hinduja group to expand its presence in Europe and cross-sell the content between these nations.
For Alfacam, this acquisition will allow them to expand to the Middle East and India and we believe this will enable them to ink deals to film various cricket and other sports events in the country.
Founded in 1985, Alfacam provides TV facilities and services to broadcasters and production houses for filming and broadcasting of major sports and entertainment events. The Company owns television studios, editing equipment, cameras, and 35mm film transfer-to-video equipment. Alfacam also owns Eurolinx, which provides SNG satellite services and the wireless transmission of HD-images over short, medium and long distance through airplane, helicopter, moto or onboard for sports events like cycling, marathons, triathlons, sailing, speedboat, car and motor races.
Last year, the company was appointed to film the London Olympic Games 2012 and the European Football Championships in Poland and Ukraine. In past, it has covered Europeans events such as Eurovision, Super Games – London 2012, 2012 ITU World Triathlon Series, Velux European Handball Federation Final 4 2012, among others.
Other Media Developments
Recently, News Corporation paid $335 million to acquire the 50% stake in ESS. Apart from that, Disney has also expanded its presence in India by acquiring UTV, and UTV has a fairly comprehensive broadcast business in place.
In January 2012, Reliance Industries (RIL) divested a part of its interest in ETV Channels to TV18 Broadcast Limited. TV18 and Network18 are funding the acquisition through a consolidated Rs 5400 crore rights issue, a part of which is being subscribed to Network18 Promoters backed by RIL backed Independent Media Trust.
In July 2011, Media company Multi Screen Media, which runs general entertainment channel Sony Entertainment Television, acquired Eenadu TV‘s network of regional channels, which is run by media baron, Ramoji Rao.