Sun TV Network questioned over Rs 450-cr movie acquisition plan

Sun TV has clarified to the BSE that the plan to buy satellite broadcast rights from film producers is a routine activity and does not constitute something new or extraordinary

BestMediaInfo Bureau | Mumbai | August 4, 2015

Just days after it posted impressive results in Q1 FY16, Sun TV Network finds itself in the dock, with the Bombay Stock Exchange (BSE) seeking clarification with reference to a news article that appeared in the August 1, 2015 edition of Business Standard, captioned 'Sun TV to invest Rs 450 Crs in buying movie rights'.

Clarifying to the BSE, Sun TV Network stated, “The company has always been buying satellite broadcast rights from film producers to provide content for our various programming initiatives for the past several years. In that sense, the above news item is about a routine activity and does not constitute something new or extraordinary. The amounts spent on purchase of satellite broadcast rights have been around the same ballpark for the past couple of years and appropriately disclosed in annual accounts.”

The statement further added, “Since we believed bona fide that any disclosures about the amount allocated for purchase of movie broadcast rights are routine in nature, it does not qualify under clause 36 of the Listing Agreement.”

Sun TV Network has been in the news for the Aircel-Maxis deal, where former Union Telecom Minister Dayanidhi Maran had allegedly arm twisted Aircel owner C Sivasankaran to sell his stake to Maxis.

In 2011, the CBI had filed an FIR against Maran alleging that he received Rs 549 crore for favouring Aircel in various deals that were owned by Maxis. The amount was allegedly received by a company owned by Dayanidhi Maran's brother, Kalanithi Maran, who controls the Sun TV Network.

Info@BestMediaInfo.com

Info@BestMediaInfo.com