Three Companies, One Deal: Independent Media Trust Completes Its Open Offers
Three Companies, One Deal: Independent Media Trust Completes Its Open Offers
Independent Media Trust controlled by RIL has completed open offers for 3 Network18 group companies with total fund outgo amounting to INR 17 crore. Not many investors have tendered their shares in the deal.
Three in One
In separate filings to the BSE, Independent Media Trust has indicated that it has acquired 54.14 lakh shares for INR 16.34 crore in TV18 Broadcast while purchasing 2.60 lakh shares of Network18 Media for INR 1.06 crore. In the third open offer, close to 15 lakh shares of Infomedia Press Ltd were acquired for INR 45.9 lakhs.
In comparison, the proposal had been made to acquire shares of INR 2,200 crore through 3 open offers. The RIL Board had approved funding of INR 4,000 crore to Independent Media Trust. IMT was given this approval on 29th May, 2015. RIL is the sole beneficiary of IMT and the approval was given for acquisition of control in Network18 Media & Investments Ltd (NW18), along with its subsidiary TV18 Broadcast Ltd (TV18).
The Open Offers
Open offers opened on 3rd December and closed on 16th December 2014.
"IMT would use the funds to acquire control over NW18 and TV18 resulting in ownership of about 78 percent in NW18 and 9 percent in TV18 and to acquire shares tendered in the open offers," the company issued a statement to this effect.
Open offer was made for the acquiring of up to 22,99,46,996 equity shares of Network18 Media & Investments amounting to 21.96% stake, for INR 943.70 crore and for the acquisition of 44,65,10,110 equity shares which amounts to 26% of TV18 Broadcast for INR 1,347.57 crore.
A third open offer amounted to 1,30,62,224 equity shares of Infomedia Press Ltd. This is a 26% stake purchase for INR 3.92 crore rupees. Network18 has interests in a wide range of genres including e-commerce, films, internet, television, mobile content, magazines and associated businesses. The properties and interests of Network18 include money control.com, firstpost.com, homeshop18.com, and bookmyshow.com. Colours, CNN-IBN, CNBC TV18, CNBC Awaaz and IBN7 are some of its broadcast channels.
Joining Hands For Deal That Speaks Volumes
The two companies , RIL and Network18 Group have collaborated for a multi-layered deal through which the Mukesh Ambani led corporate giant would get access to the distribution services and content of this electronic media group.
This deal has the potential to change the media industry. RIL is one of the largest corporate conglomerates in the world and Network18 has a vast range of media interests. With a combination of the two on the anvil, the media group will experience more than just a change of ownership. RIL will be foraying into a new field which has plenty of value for the Indian consumer. This is clearly a deal with many winning implications for the media sector.
