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||4 August 2009
Malaysia’s Astro up stake in India’s radio station
Malaysia’s Astro All Asia Networks PLC has increased its stake in India-based South Asia FM Ltd (SAFL) to 20 percent from 6.98 percent for a consideration of 60.55 million ringgit as it believes there is potential to grow its radio advertising there, a Malaysia business daily reported.
As at end-2008, the Indian radio advertising market size stood at 8.4 billion rupees (643.44 million ringgit), it said, adding that by 2013 the market size was expected to reach 16.3 billion rupees.
“The size of the radio advertising market as a percentage of the total advertising market in India is still relatively low at 4 percent when compared with the global average of 8 percent.
“Therefore, there is potential for the radio advertising to grow in the future,” Astro told Bursa Malaysia (Malaysia’s stock exchange) Monday. It also said the Indian radio landscape was expected to undergo positive developments.
The acquisition was undertaken via the company’s wholly-owned subsidiary, South Asia Multimedia Technologies Ltd. The exercise comprised the acquisition of 13.83 million existing SAFL shares from AH Multisoft at par for 10.59 million ringgit.
It also subscribed for 43.9 million compulsorily convertible preference shares in SAFL for 33.62 million ringgit, with the remaining stake acquired from other shareholders.
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