Chennai: Sun TV Network, the broadcasting company owned by billionaire media mogul Kalanithi Maran, who also owns carrier SpiceJet, is making analysts wary because of its frequent buying and selling of aircraft. The latest set of transactions in this regard happened in fiscal 2013, when Sun TV sold a three-year-old aircraft for Rs 190 crore and in its place bought a new one for Rs 295 crore. These transactions made it the company's third buy and second sale of aircraft in five years.
Amit Kumar, analyst at Kotak Institutional Equities, who pointed to this issue in a research note on Tuesday, wrote that Sun TV had replaced the old aircraft because of "operational concerns".
He wrote, "It remains unclear why an informed buyer would pay Rs 190 crore (equal to net block, nil loss on sale) for such an asset."
These concerns have been raised at a time when the operational metrics of Sun TV, one of South India's leading broadcasters, look healthier that at any time in the recent past. Over the past two years, it has had setbacks in the form of the 'nationalisation' of cable distribution in Tamil Nadu as well as investigations of Maran by the Central Bureau of Investigation.
Read News In full 18/09/13 Sanjay Vijayakumar/Economic Times
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