Reliance to sell 32.5 mn shares of Network18 to comply with listing norms

Reliance Industries Limited (RIL) has offered to sell 32.5 million shares of Network18 Media & Investments Limited (NW18), forming 3.10 per cent of the equity capital of the company to bring down the aggregate shareholding of the promoter and promoter group to 75 per cent and increase the public shareholding to 25 per cent  as mandated by the Sebi listing agreement.

Shinano Retail Private Limited, which is 100 per cent owned by Reliance Industrial Investments and Holdings Limited, a wholly owned subsidiary of RIL, has issued a notice of offer for sale of 32.5 million shares of NW18 through the stock exchange mechanism in accordance with the SEBI norms.

The floor price for the offer for sale, which would take place on 8 July, will be decided after close of market hours tomorrow. At the current price, the share sale could be worth over Rs 200 crore.

In January 2012, Network18 Group and Reliance Industries had joined hands for a multi-layered deal, under which the Mukesh Ambani-led corporate giant sold part of its interest in ETV channels and got access to content and distribution assets of the electronic media group.

Reliance Industries had, on 29 May last year, acquired majority holding in Network18 Media & Investments Ltd, including its subsidiary TV18 Broadcast Ltd, for Rs4,000 crore through Independent Media Trust (IMT).

Subsequently, the company made open offers to acquire controlling stake in media group Network18 and its subsidiaries.

Promoter shareholding in the company as of 31 March2015, stood at 78.1 per cent.

In a separate filing, Network18 group firm TV18 Broadcast Ltd said Hari S Bhartia, non-executive and independent director, has resigned from the directorship of the company effective from 30 June 2015.