Indian media baron Subash Chandra bid for ICO Global

Subash Chandra, CEO of Zee Telefilms is reported to have made a $1.2 billion bid for acquiring 74 per cent stake in ICO Global . ICO Global was promoted by a consortium of companies to build up a satellite network for global telephony, similar to that by Iridium, its competitor.

ICO Global is owned by 60 strategic investors, mostly national telecom operators from various countries. Iridium is promoted by a consortium led by Motorola of US. Both Iridium and ICO Global have since sought protection under Chapter 11 (bankruptcy) of US Company Law. Videsh Sanchar Nigam Ltd (VSNL) is an investor from India in IOC Global with an exposure of $ 150 millions in the project.

Zee Telefilms is part of the Essel group and was incorporated under a different name in 1982. The company was renamed Zee in 1992. Zee Telefilms is engaged in the production and export of audio visual entertainment software. The software is exported to Asia Today Ltd (ATL) in Hong Kong, the broadcasting company.

The Zee group operates through a clutch of companies which handle different aspects of the entertainment media business. Another group company, Patco exports program software for Zee Cinema and Zee India. Buddha Films exports program software for the `Music Asia' channel. There are two other links in the group's media entertainment business. Siticable is a domestic distribution company that serves about 3.5 million homes spread over 43 cities and Zee Multimedia Worldwide is a Mauritius-based holding company for the group's overseas operations.

Reports said that Chandra's bid amount of ICO Global is higher than that from Craig McCaw of US-based Teledisc. McCaw is said to have offered $ 1.2 billion for a 80 per cent stake and Subash Chandra is said to have offered the same amount for a 74 per cent stake. The final decision on the bid is expected to be taken by the end of this month. The court has asked McCaw to submit $ 150 million and those who want to outbid it will have to a pay 12 per cent premium on this amount.

Zee Telefilim source said that Chandra has commitments from investors and bankers for the project and no money will be used from his television or other businesses in India. There will be no impact on other businesses in this bid. Chandra is mobilizing his resources through support from various investors and bankers abroad.

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