HomeShop18, which runs a home shopping network and an online marketplace — part of Network18 Media & Investments, is all set to acquire a majority stake of around 74 percent in Shop CJ Network.
Shop CJ Network is an equal joint venture between private equity investor Providence Equity Partners and Korean firm CJ O Shopping. The deal is estimated to be worth between ₹180 crore to ₹200 crore.
With this transaction, Providence Equity Partners will be taking an exit from Shop CJ Network and will completely sell its stake in the company.
A person aware of the development told to Economic Times:
HomeShop18 will be acquiring 74% stake in Shop CJ. Providence, which is looking at an exit from all its Indian investments, will sell out completely, while CJ O Shopping will reduce its stake to 26%.
Recently, Shop CJ shuttered its Tamil home shopping channel. Once the deal gets completed, Shop CJ’s Mumbai headquarters will be closed and operations will be shifted to Delhi–NCR.
Shop CJ Network was previously known as Star CJ. It was launched in 2009 as a joint venture between Star India and CJO Shopping. However, in 2014, Star India sold its stake to Providence Equity Partners for about ₹414 crore ($63 million).
Network18 had launched HomeShop18 television channel in April 2008 and in 2011, it launched its online marketplace HomeShop18.com. The company is backed by SAIF Partners and South Korea’s GS Home Shopping, among others.