New Delhi: Network18 Media & Investments owned HomeShop18 is set to acquire 74% stake in teleshopping Network Shop CJ – a joint venture between private equity investor Providence Equity Partners and Korean firm CJ O Shopping. The deal negotiation started in June 2017 is likely to culminate in couple of weeks.
As part of the deal, HomeShop18 will be acquiring 74% stake in Shop CJ. Providence, which is looking at an exit from all its Indian investments, will sell out completely, while CJ O Shopping will reduce its stake to 26%.
The deal could be announced later this week and is expected to be in the rangeof Rs 180-200 crore and as a precursor to the deal, Shop CJ had closed down its Tamil home shopping channel Shop CJ Tamil.
After the acquisition, it is learned, Shop CJ’s Mumbai headquarter will be closed and operations transferred to Delhi–NCR. Shop CJ, initially known as Star CJ, was launched in September 2009 as a 50:50 JV between Star India and CJ O Shopping. In 2014, Star India sold its 50% stake to Providence Equity Partners for $63 million.
