Nimbus Comm may sell 26 pc stake to strategic investor

Nimbus Communications, the Rs 850-crore media company with interests in entertainment, sports and broadcast, may sell 26 per cent stake to a strategic investor. The company is expecting over $140 million for this stake, which will value it at over $550 million. UBS is advising Nimbus on the transaction, which is likely through a sale of shares by existing shareholders as well as a public listing. When contacted, Nimbus executive vice- president (strategy & business development) Prasana Krishnan told ET: “UBS will advise the company after studying its growth plan in detail. But the preliminary advice is that we should evaluate all options including strategic and financial investors. Should we choose to induct a strategic investor, we intend to complete the process by March 2009. We may provide a stake to the strategic investor of up to 26 per cent which may be through a combination of primary issue and a partial sale of secondary shares by financial investors, though a final decision will be taken on this at a later stage. “