HONG KONG – STAR Television has been given approval to sell its stake in Indian home shopping operation Star CJ.
Providence Equity Partners, a global investment group with some $40 billion of funds under management, is to buy the stake for an undisclosed sum.
Star CJ is a joint venture with South Korea’s CJ O Shopping, part of the CJ group that also includes film and TV operations under CJ E&M.
With investment of $55 million, it began operations in 2009 as a six hour slot on Star India’s Star Utsav channel and in 2010 expanded to become a 24-hour channel and website.
It can continue to use the Star CJ brand for 12 months, but will have to change name after that.
The move is being touted as a growth opportunity for Star CJ, which competes directly against Network 18’s HomeShop 18, which is reportedly being lined up for an IPO in New York.
Star CJ had revenues in excess of KRW100 billion ($98 million) last year, according to Korean sources.
Star has been selling off non-core operations outside sports and entertainment. Disposals include Hathway Cable & Datacom and news broadcaster Media Content and Communication Services.
The deal to sell the stake to a Providence subsidiary in Mauritius was approved after a year of discussions and was one of the last acts of India’s previous government.
Providence has stakes in other Indian media businesses including Hathway and UFO Moviez, as well as stakes in leading Hong Kong broadcaster TVB. It has also got home shopping experience in Europe where it owns a stake in HSE24.