Sahara One Media & Entertainment is believed to be in talks with NRI businessman C Sivasankaran for selling 15 per cent stake in the company.
While sources close to the developments said the deal may be closed soon, the Sahara group spokesperson said, "We can not confirm or deny anything on the issue."
The sources said if the deal matures, Sivasankaran might scale it up to 26 per cent at a later stage.
Apart from the fund requirement to meet the company's growth needs, the Sahara group, the company's promoter, is required to bring down its stake in Sahara Mass Communication from 96 per cent to at least 75 per cent, in accordance with the proposed guidelines of the Securities & Exchange Board of India, which call for at least 25 per cent free float in a company.
Earlier this year, Sahara One sold six per cent stake to Bennett, Coleman & Co Ltd (BCCL), publishers of the Times of India and the Economic Times, for Rs 37.84 crore (Rs 378.4 million) and had clearly indicated that the company was in talks with other investors to bring down the promoters' stake.
Meanwhile, Bertelsmann AG, the world's largest private media conglomerate, is also in preliminary talks for acquiring a sizeable stake in Sahara One. The group had engaged Ernst & Young to chalk out a restructuring plan.
Sahara One posted net profit of Rs 6.5 crore (Rs 65 million) on a total income of Rs 215 crore (Rs 2.15 billion) in 2004-05. On September 30, 2005, (the latest data available from the Bombay Stock Exchange), the promoters hold nearly 96 per cent stake in the company.
The stock closed at Rs 378.95 on the BSE on Friday, 2.42 per cent higher than the previous close.
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