Homeshop18, part of Network 18 Media & Investments, is set to acquire 74% stake in Shop CJ Network — an equal joint venture between private equity investor Providence Equity Partners and Korean firm CJ O Shopping.
ET was first to report on June 23 that the two parties are in talks.
Sources with direct knowledge of development told ET the deal could be announced later this week and is expected to be in the Rs 180-200 crore range.
“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%,” said a highly placed source on the condition of anonymity. In its earlier report ET had mentioned that the talks were at an advanced level and “if all goes well, it could be announced in next 3-4 months”.
As a precursor to the deal, Shop CJ had shuttered its Tamil home shopping channel. 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.
Shop CJ: HomeShop18 to buy Shop CJ; Providence to exit, Marketing & Advertising News, ET BrandEquity
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