Aditya Birla Group looks to exit Aroon Purie's Living Media

The Aditya Birla Group is believed to have mandated Bank of America Merrill Lynch (BofA-ML) to find a buyer for its 27.5 per cent equity stake in Aroon Purie-controlled Living Media India.

Living Media acts as a holding company and owns 57.2 per cent stake in TV Today Network.

The listed company controls its broadcasting assets, including Aaj Tak and Headlines Today, and also operates its publishing business, which includes a host of magazines such as India Today.

The Birla group had bought its stake in May 2012 and had at that time said it saw media as a sunrise sector from an investment point of view and that Living Media offered one of the best opportunities for growth and value creation. When contacted, an Aditya Birla group spokesperson said the group did not comment on market speculation.

An e-mail query to Purie did not get a response. The BofA-ML spokesperson, too, declined to comment.

While the two groups never divulged the price at which the Birlas bought the stake, experts say the company has been valued between Rs 1,300 crore (Rs 13 billion) and Rs 1,400 crore (Rs 14 billion) and the Birlas had forked out about Rs 350 crore (Rs 3.50 billion) to buy the stake.

The stock price of TV Today has gone up sharply in the past two years from Rs 54 a share on May 18, 2012, the day the deal was announced, to Rs 152 now.

The group had earlier forayed into the entertainment business and in 2003 launched a movie and television software production company called Applause Entertainment, best known for producing Hindi movie Black, starring Amitabh Bachchan. However, the company closed down in 2009.

The Birlas' move to find a buyer comes close on the heels of Reliance Industries buying out Raghav Bahl's Network18 Media and Investments and its subsidiary, TV18 Broadcast through Independent Media Trust, of which RIL is a sole beneficiary.

There are many others who have invested in the media space.

The Anil Ambani group, which made numerous investments in media, is, however, selling or reducing its stake. While it has an 18 per cent stake in Bloomberg TV, it has reduced its exposure in TV Today Network from 14.9 per cent to a mere 4.5 per cent.

Abhey Oswal-promoted Oswal Greentech, a Delhi-based chemicals and fertilisers company, had also picked up a 14.2 per cent stake in NDTV.

SURPRISE SHOW

57.2% Living Media's stake in TV Today Network

May 2012 Aditya Birla group picks up 27.5% stake in Living Media India

Rs 1,300-Rs 1,400 cr Valuation of Living Media then

Rs 350 cr Amount that the group had forked out for the stake

Rs 152 Current stock price of TV Today, compared with Rs 54 a share on May 18, 2012