Star CJ, CJ’s home shopping subsidiary in India in cooperation with STAR TV, signed a new partnership deal with U.S.-based private equity fund Providence Equity Partners on May 29. (image: CJ O Shopping)
SEOUL, May 30 (Korea Bizwire) – CJ O Shopping plans to spur its home shopping business in India through partnership with a global private equity fund of US$40 billion.
Star CJ, CJ’s home shopping subsidiary in India in cooperation with STAR TV, signed a new partnership deal with U.S.-based private equity fund Providence Equity Partners on May 29. With the partnership, the equity fund joins CJ’s business in India by obtaining 50 percent of the shares of Star CJ from STAR TV as a “financial investor.”
According to sources, CJ O Shopping will retain the controlling rights of Star CJ but the name of the subsidiary will be changed within this year in consultation with Providence.
Founded in 1989, Providence Equity Partners manages $40 billion focusing on media, communications, education, and information technology. Especially it runs the largest home shopping company “HSE24” which conducts businesses in five countries in Europe. As it highly estimated the Indian home shopping industry, it has been contacting for investment with Star CJ since 2012.
Star TV, a Hong Kong-based media group which jointly established Star CJ with CJ O Shopping, had considered the sales of its shares in Star CJ following a strategic decision to focus on sports and entertainment businesses. On May 2, it gained approval from the Foreign Investment Promotion Board of India for transferring its shares to Providence.
Launched in March 2009, Star CJ, a 50:50 joint venture with $55-million paid-in capital between CJ and Star TV, is broadcasting shopping programs 24 hours a day since August 2010 and increasing its market share in India rapidly by recording 100 billion won of sales revenue last year.
IR News Team (irkorea@koreabizwire.com)
