Intel picks up 49% stake in Hinduja Finance

BANGALORE: Intel Capital a venture capital arm of Intel Corporation, has

picked up a 49 per cent stake in Grant Investrade a Hinduja Finance subsidiary

for $49 million (Rs 219 crore). This fresh investment in Grant Investrade will

be utilized by the company to increase its stake in IndusInd Media &

Communications (IMCL) that operates under the brandname INCableNet, from the

present 3.5 per cent to 6.7 per cent through a preferential allotment of shares

at a price of Rs 1,095 per share.

The transaction would effectively push up IMCL’s equity base from Rs 60

crore to Rs 62 crore and peg the valuation of the cable TV operator at Rs 6,789

crore. The deal is subject to the Foreign Investment Promotion Board (FIPB)

clearance. INCableNet, which offers multi-channel transmission to more than four

million Indian homes, is classified among the 10 largest cable TV operators in

the world in terms of subscribers. The network operates in nine cities, and in

Mumbai, it serves over 80 per cent of the cable market. As per the deal, Intel

Capital has the option of raising its holding in IMCL to 20 per cent.

"This investment reflects Intel’s ongoing commitments to enable rapid

deployment of high-speed broadband Internet access on a worldwide basis. We have

decided to participate in INCableNet based on its unique market positioning and

our common objectives for the Indian broadband market segment,’’ said Intel

Home Products Group vice-president and general manager Claude Leglise.

The board of Hinduja Finance has approved the acquisition of a majority

control in IMCL by merging Richman Investrade with itself. The swap ratio has

been fixed at one equity share of Hinduja Finance for every five shares of

Richman Investrade.



The merger of Richman Investrade has also resulted in the acquisition of a
majority control in IndusInd Entertainment. The company operates local

television under brands like IN TV, IN Mumbai and IN Time. These channels

operate in Mumbai, Bangalore, New Delhi and Indore offering local language

programming. The board of Hinduja Finance has also approved the acquisition of

over 51 per cent control in Cable Video India through its ‘in principle’

decision to merger Melody Trading with the company. Cable Video operates the

highly popular movie channel CVO and owns over 1,600 cable video rights.