India’s Hinduja Group is looking to acquire struggling TV facilities company Alfacam Group. The two companies signed a Memorandum of Understanding on Dec 11th. The pair will now look to complete negotiations prior to Jan 31st.
The basis of the Agreement will see a new credit facility created worth €24 million, and which will replace substantially all of Alfacam’s current debt. An additional €6 million will be invested into Alfacam to provide working capital.
Further due diligence is now taking place, and Alfacam’s lending banks have agreed to suspend debt demands for the negotiation period.
“The envisioned transaction with Hinduja Group will allow Alfacam Group to find a structural solution securing its future with the help of strong international industrial partner in the capital of the Group. Upon completion of the transaction, Alfacam Group will be able to fully concentrate on its strengths, namely its operational power, its commercial drive and its innovative vision,” said a statement.
Hinduja Group added that it can offer support to Alfacam in deepening its business in India, Middle East and in South East Asian regions. “Thanks to their activities and knowledge of the media industry, the companies will be able to develop together new technologies to optimize the use of content on new media platforms. Hinduja Group also owns some cable networks and many other media related assets and is active in film production.”