CA Media makes 4X returns on its investment in Endemol Shine India after an arbitral award
New Delhi: Paris-headquartered independent content creation company Banijay Group has bought out media-focussed venture capital fund CA Media’s 49% stake in one of India’s leading production studios Endemol Shine India post a three-year arbitration process. CA Media initially picked up 49% in Endemol Shine India, the producer of reality shows such as Bigg Boss, Fear Factor Khataron Ke Khiladi and The Great Indian Laughter Challenge, in March 2012 for around $20-25 million.
The exit is at around $90-100 million, a four-fold increase in USD terms, but more than a 7X increase in the Indian rupee value, said people aware of the matter. Banijay, which entered into a $2.2 billion deal in 2019 to acquire Endemol Shine Group, wanted to take full control of the Indian entity and buy out CA Media’s stake in the company. However, the two parties did not agree on the valuation done by a third party and the matter was referred to arbitration. Insiders said that CA Media won the arbitration, following which Banijay bought out its stake.
Following the deal, Banijay is likely to restructure its business in India. At present, Banijay has a 50:50 JV with former Endemol India MD Deepak Dhar, Banijay Asia. Going forward, both Banijay Asia and Endemol Shine India will work under the leadership of Dhar, who has been appointed founder and Group chief executive officer. Banijay did not revert to Mint’s queries on valuation and total payout.
The move marks the third successful exit for Rajesh Kamat, who manages CA Media and Emerald Media portfolios, apart from a liquidity event in OML Entertainment. Earlier, Emerald Media, which had led the $35 million Round D for Amagi in early 2017, exited with a three-fold return.
Read more on livemint.com
