Star India sells entire stake in Star CJ to Providence Group
Star HS Ltd. ("STAR"), an affiliate of STAR India, the nation's leading media and entertainment conglomerate, has completed the sale of its 50 per cent stake in STAR CJ Network India Pvt. Ltd. ("STAR CJ"), the home shopping joint venture with Korea's CJ O Shopping Co. Ltd. ("CJ").
P5 Asia Holding Investments (Mauritius) Limited, a group company of Providence Equity Partners LLC ("Providence" and along with all affiliates, "Providence Group") has acquired STAR's 50 per cent stake in the venture.
Providence is the world's leading private equity firm focused on media, communications, education and information investments.
It manages funds with USD 40 billion in commitments and has invested in more than 140 companies globally since its inception in 1989. Providence is also a controlling shareholder in HSE24, the leading home shopping network in Germany.
Uday Shankar, CEO of STAR India said, "STAR CJ provides world class home shopping experiences to consumers in India and has been a valuable investment for us. We and CJ have enjoyed an excellent working relationship and we expect this to continue unaffected by the sale."
Biswajit Subramanian, Managing Director of Providence Equity Advisors India Private Limited said, "Providence is excited about partnering with CJ O Shopping, a global leader in TV home shopping. The significant TV home shopping market opportunity in India, STAR CJ's strong management team and CJ's deep domain expertise, all make this a compelling opportunity for us. Providence looks forward to working with the STAR CJ team and adding lasting value to the company in the years ahead."
Kim Yun Koo, Executive Vice President of CJ O Shopping said, "STAR India has been a close and valued partner for CJ O Shopping in building STAR CJ into a premier home shopping platform in India. CJ O Shopping looks forward to accelerating STAR CJ's growth and believes Providence will be a fantastic partner for the next chapter in this journey."
STAR CJ Network India Pvt. Ltd. (STAR CJ), formed in 2009 as a 50:50 partnership between STAR and CJ, is a part of CJ O Shopping Co. Ltd. of South Korea, the world's second-largest home shopping network.
STAR CJ operates a 24x7 home shopping channel called "STAR CJ alive" and provides a web-based portal www.starcj.com to third party sellers who list their products for sale, reaching more than 50 million households and having added five million shoppers to its network within four and a half years of its operation. STAR CJ will continue to use STAR's brand for up to one year.
Kenny Shin, CEO of STAR CJ said "We are happy to have Providence as our strategic and financial partner. It has been a pleasure and delight to deal with such a highly professional investment firm that shares our vision and understanding of the media as well as the home shopping industry. We are glad to cement this joint venture.
(Posted on 27-06-2014)