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Zee to decide on raising stake in Ten Sports by Sep end

Zee to decide on raising stake in Ten Sports by Sep end
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First Published: Wed, Jun 17 2009. 11 34 PM IST
Updated: Wed, Jun 17 2009. 11 34 PM IST
Mumbai:Zee Entertainment Enterprises Ltd will take on a call on whether or not to exercise its option to raise the stake in Ten Sports only by the end of September, chief executive officer Punit Goenka said.
The company had acquired 50% stake in the Taj TV-owned Dubai-based channel in November 2006 in a deal that pegged the enterprise value of Ten Sports at $114 million.
According to the agreement between the two companies, Zee Entertainment has an option to acquire an additional 1% stake in the company which is due to expire on 30 September.
However, the agreement also stipulates that if Zee Entertainment exercises the call option, then Taj TV has the right to exercise a put option for an additional 23% stake, which will effectively see Zee Entertainment acquiring 24% stake.
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First Published: Wed, Jun 17 2009. 11 34 PM IST