Reliance Industries to acquire Network18 for Rs4,000 crore

29 May 2014

1

Mukesh Ambani-led Reliance Industries Ltd (RIL) is buying a controlling stake in television broadcasting company Network 18 Media & Investments Limited, including its subsidiary TV18 Broadcast Ltd, for around Rs4,000 crore, in the biggest ever deal in the Indian media sector.

The investment will be made through Independent Media Trust (IMT), a wholly owned subsidiary, RIL said in a statement today.

''The board of Reliance Industries Limited (RIL) today approved funding of up to Rs4,000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network 18 Media & Investments Limited (NW18), including its subsidiary TV18 Broadcast Limited (TV18) and the open offers to be made consequent to the acquisition,'' the RIL release stated.

NW18 is the owner of a suite of premier digital internet properties, e-commerce businesses and differentiated broadcast content.

IMT would use the funds to acquire control over NW18 and TV18 resulting in ownership of about 78 per cent in NW18 and 9 per cent in TV18 and to acquire shares tendered in the open offer.

Further, in terms of SEBI (Substantial Acquisition and Takeover Regulations), 2011, IMT would be making an open offers to public shareholders for acquisition of equity shares of NW18, TV18 and Infomedia Press Limited.

IMT would be simultaneously making the public announcement under Takeover Regulations. RIL would be a person acting in concert to the open offers.

''This acquisition will differentiate Reliance's 4G business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties,'' RIL stated.

Network 18 owns a suite of channels that includes In.com, IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com, Bookmyshow.com; the broadcast channels include Colors, CNN IBN, CNBC TV18, IBN7, CNBC Awaaz.

Reliance Industries Limited (RIL), India's largest private sector company, had reported a turnover of Rs401,302 crore ($67 billion), cash profit of Rs30,795 crore ($5.1 billion) and net profit of Rs21,984 crore ($3.7 billion) for the year ended 31 March 2014.

 

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more