ABCL owns the TV9 media house, which runs satellite television channels in several regional languages, including Telugu. iLabs is promoted by Raju.
Edelweiss Financial Services has been putting together the deal, which has been 'agreed in principle', with a combination of an equity fund and a media house from western India that are jointly acquiring iLabs' stake in the company.
A source close to Raju said it might take a couple of more weeks to conclude the deal, as bankers and investors are working out last-mile details as to who brings how much funding into the deal.
iLabs currently holds about 60 per cent equity in TV9.
"Also, it is still open as to whether the investors would seek to buy the entire 60 per cent equity or would want iLabs to retain a small part of it to continue our relationship with ABCL," the source told Business Standard.
Raju 'is willing to accept the offer either way'.
The deal size is expected to be over Rs 500 crore (Rs 5 billion).
Raju, who has been in negotiations with various prospective buyers for the last three months, was originally offered to sell 35
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