Viacom 18, the 50:50 joint venture between Viacom Inc and India’s IBN18, is considering making a voluntary offer to buy out film investment fund The Indian Film Company (TIFC), which is listed on the London-based Alternative Investment Market (AIM).
Since listing on AIM in 2007, TIFC has invested in Hindi blockbusters such as Jab We Met (pictured), Welcome, Golmaal Returns, Singh Is Kinng and Ghajini. However, it invested in several flops in the financial year ended March 2010.
The company has also recently seen a string of executive departures including CEO Sandeep Bhargava who quit last month.
India’s Network18 Group, which owns IBN18, currently also owns 80.4% of TIFC after graudally increasing it shareholding over the past six months. It’s expected that Viacom 18 will acquire Network18’s holding along with the remaining free-floating shares in an all-cash deal.
“This possible offer is in the process of being formulated and subject to a number of pre-conditions, will only be made if and when all such pre-conditions are satisfied and will be made in full compliance of the UK Takeover Code and other regulations,” Viacom18 said in a statement.
Viacom 18 operates the successful Hindi general entertainment channel Colors which could benefit from the movie content provided by TIFC.