ITV

Tag: Network18

  • Sagarika Ghose tweets goodbye to CNN-IBN

    Sagarika Ghose tweets goodbye to CNN-IBN

    MUMBAI: Like so many others before her, she took to Twitter to announce her departure from the network she has been associated with for so long. CNN-IBN deputy editor Sagarika Ghose tweeted late on the night of 3 July: “Goodbye CNN-IBN. God bless!”

     

    Sagarika had gone on leave with her husband  IBN18 editor in chief Rajdeep Sardesai  last month and expectations were that she would return if one went by the email he had sent out to his team about their departure. 

     

    Speculation, however, was that she would not return to the channel – part of the Network18 group, now owned by Mukesh Ambani’s Reliance Industries – and would probably hop over to the Aroon Purie and TV Today Network owned English news channel Headlines Today.

     

    She also sent out a message to her colleagues at CNN-IBN in which she stated that she was leaving to try her hand at something “a little more challenging and creative, explore new vistas in reportage and commentary after almost a quarter of a century in journalism, among them 9 fabulous years at CNN-IBN.”
     
     
    She added in the message: “CNNIBN has not only been an integral part of my life for almost every waking minute these past years, but more important, working with you has been a joy and an honour. At CNNIBN, an incredible team of professionals brought total commitment and integrity to reporting the news. We put journalism first and because of that we became a trusted and much loved brand.
     
     
    “A free fearless press is the infrastructure of democracy–without it the term “citizenship” is diminished indeed. CNNIBN was always free and responsible! That’s why it became such an incredible success, so beloved of viewers. We created magic and that magic touched millions of lives, and the magic will remain with each of us always! The words of John Tusa, the venerable former director general of BBC World Service come to me: “Journalists cannot become the outriders of authority…but the freedom we have is the freedom to be responsible,” continued Sagarika in the message.
     
     
    She ended it with: “Good bye is an unhappy word. I prefer au revoir..until we meet again.”

     

    It is not known whether Rajdeep too will be following in the footsteps of his wife and announcing his departure from the news network, but once again speculation is that it is only a matter of time. Apparently, he has an offer to pen a book from Penguin.

     

     

    Sagarika is the daughter of former DD director general Bhaskar Ghose, who strove to change the face of the pubcaster.

     

    Meanwhile, even as she posted her farewell on Twitter and in a message, her husband announced on Twitter that he is  “reading Dilip Kumar bio and listening to SJ/Mukesh/Shailendra classic: yeh mera deewanapan hai.. Bliss! Gnight, shubhratri.”

  • Nikhil Wagle: Another one bites the dust at Network18?

    Nikhil Wagle: Another one bites the dust at Network18?

    MUMBAI: Is senior journo Nikhil Wagle going to end up as another casualty at the Network18 group? 

     

    What has got tongues wagging is a tweet which Wagle sent out this morning in which he stated: “My decision to leave Mum (read Mumbai) is final. Need to get away from crowds and madness! Want ultimate peace.”

     

    Wagle is editor in chief at IBN Lokmat which is part of IBN18 which itself is part of the Network18 group. Apparently, he has been on leave for some time now.

     

    RTI activist and senior journalist Vinita Deshmukh questioned him on his tweet, “What are u saying? Where are you going? Will you be the next TV star to desert us?” Wagle responded by saying: “Will always be with people n activists like u! Don’t know about TV!”

    So we at indiantelevision.com also got into the twitter game and messaged him asking him what was going on. He responded after some time, saying he was on leave. And when questioned whether his leave was permanent or just a short break, his quick repartee was “Wait and watch!”

     

    Wagle tweeted later at close to midnight: “Please don’t spread rumors. I am with@ibnlokmattv. Not resigned. On leave.Was hospitalized n adviced rest.“ (updated at 11:23 pm, 28 June 2014).

    Wagle has worked with Doordarshan as well as newspaper Aapla Mahanagar and has been with IBN Lokmat since its launch in 2008.

     

    Currently, IBN18 editor in chief Rajdeep Sardesai and CNN-IBN deputy editor Sagarika Ghose are on leave. Though Rajdeep has calmed his team by saying that he would be back in July before he went on leave earlier this month, the rumour is that he is not returning.

     

    After Reliance announced its acquisition of the network last month from founder Raghav Bahl, group CEO B Saikumar, COO Ajay Chacko, CFO RDS Binni Bawa and several others put in their papers. It is unknown who will be taking their positions. Meanwhile, the open offer for Network18 is slated to go on till August.

     

  • ETV News Gujarati targets Rs 40 crore revenue in first year

    ETV News Gujarati targets Rs 40 crore revenue in first year

    MUMBAI: The last few months saw several regional news channels sprout from the Network18 group. The channels from the bouquet charged into the states of Karnataka, West Bengal and Haryana/Himachal Pradesh and soon another channel is set to make headway into the land known for its lions.

     

    In the presence of the new Gujarat chief minister Anandiben Patel, ETV News Gujarati is set to launch in 21 June. The current news bulletins on its sister general entertainment channel ETV Gujarati will cease to exist with the arrival of the news channel. “For the last so many years our Gujarati viewers have been demanding a 24 hours news channel for the region. Since, ETV news is known for its credibility, viewers were not satisfied with only a few news bulletins which ETV was running on the existing Gujarati channel,” says ETV news group editor Rajesh Raina.

     

    The existing team that was creating the bulletins has now been enhanced with additions in the constituency level. Currently, being broadcast out of the network’s previous owner Ramoji Rao’s massive studios in Hyderabad, it will later shift to its headquarters in Ahmedabad and a sub-office in Gandhinagar. Naresh Dave is the editor while Neeraj Attri will be looking after the marketing and sales head of the channel.

     

    “Hindi channels are strong in Gujarati because of lack of quality content on regional channels. There is still a potential here and also a vacuum. FMCG, pharmaceuticals and agricultural companies are potential target advertisers,” says Attri.

     

    The competitors to ETV News Gujarati are TV9 Gujarati and Sandesh News. The size of the entire state’s market including the national Hindi channels is about Rs 500 crore to Rs 550 crore out of which regional channels command close to Rs 100 crore to Rs 110 crore.

     

    Sources in the channel say that that ad rates is quoted at Rs 4000 for a ten second slot. While the channel is looking at a break even in about two years, the aim for the first year is to reach revenues close to Rs 40 crore. 

     

    Hoardings have already been placed across Ahmedabad, Surat, Baroda and Rajkot as well as promotions on other ETV channels. Media planners and buyers are being reached out through e-mailers. Print and radio advertisements are not yet in the pipeline.

     

    Distrubtion across cable networks in the state including the leading GTPL as well as Den and InCable have been secured. It is also looking at covering the border areas of Maharashtra and Madhya Pradesh. In Mumbai it is available on all national connections. DTH platforms are yet to be added.

     

    “ETV is known as the voice of people in the entire country as we operate channels in different regional languages. Expansion will definitely help to reach out to a sizeable population of Gujarati speaking people in the state and outside,” says Raina.

     

    Bulletins will cover both national and regional news. This apart, film based news, sports based news, business news and city bulletins will form a part of the FCP. Live bulletins will air from 6 am to midnight.  Devotional and astrology shows in the morning and cookery and women’s magazine shows in the afternoon will be aired as well.

     

    A popular ETV Hindi programme Central Hall will also be telecast.

  • Network18, SAIF and Accel invest Rs 150 crore in BookMyshow

    Network18, SAIF and Accel invest Rs 150 crore in BookMyshow

    MUMBAI: The holding company of one of India’s leading online entertainment ticketing companies BookMyShow, Bigtree Entertainment has received a shot in the arm. The company’s existing investors Network18 and Accel Partners and its new investor SAIF Partners have together invested Rs 150 crore in the company.

     

    With this round of financing, the company is looking at increasing its penetration outside tier I cities, build its infrastructure and expand its offering in order to take customer experience to the next level. Avendus Capital was the sole financial advisor and BMR Legal was the legal advisor for this transaction.

    On signing the deal, BookMyShow founder and CEO Ashish Hemrajani said, “We are very happy to have SAIF Partners as our latest investors. The common vision of creating scalable and large businesses was aligned to our thought process. Their experience of having helped companies such as MakeMyTrip and Just Dial go public would be of immense value to us as we move forward in our growth plans. We are also very happy to have delivered value to our existing investors and the fact that both Network18 and Accel have further invested in this round, shows their confidence in the company and the ability of the team to continue delivering and innovating.”

     

    Commenting on the transaction, SAIF Partners MD Deepak Gaur said, “We are delighted to participate in this exciting journey of bringing world class convenience to consumers across entertainment verticals that BookMyShow offers. We are confident that with the current round of capital raise, BookMyShow team will continue to strengthen the relentless focus on innovation, customer service and technology as our country takes rapid strides in internet penetration.”

     

    Accel India partner Prashanth Prakash added, “As an industry leader, BookMyShow continues to set the agenda when it comes to movie and event experiences in India. We look forward to supporting the team in continuing to enhance value for their customers and realising the potential of becoming the default destination for consumers’ entertainment needs.”

     

    Commenting on the transaction, Capital 18 MD Sarbvir Singh said, “BookMyShow has emerged as the country’s leading entertainment ticketing destination. The company continues to attract high pedigree investors and with SAIF Partners joining Accel Partners and Network18, the BookMyShow team will be able to further enhance customer experience and market leadership. We were happy to participate in the transaction and look forward to the next phase of the BookMyShow journey.”

     

    A release from the company states that it gets more than 35 million visits and 500 million page views approximately and has sold more than 10 crore tickets till date. It has also re-launched a mobile app to facilitate ticketing in India and an additional 20 cities have been covered by adding new cinemas. BookMyShow now has a presence in over 200 cities and is trying to further penetrate the single screen cinema segment in each of these markets. 

     

    BookMyShow was the exclusive online ticketing partner for the ICC T-20 Championship in Bangladesh. The company is also the exclusive ticketing partner for many IPL teams which include Mumbai Indians, Delhi Daredevils, Rajasthan Royals, Hyderabad Sun Risers, Chennai Super Kings and Kings XI Punjab. It also manages ticketing for IPL central rights along with accreditations. The other sport events for which BookmyShow has been the exclusive online ticketing partner are; Chennai Open Tennis championship, Super Fight League and Yonex Badminton.

  • Reliance Jio to see phase-wise launch in 2015

    Reliance Jio to see phase-wise launch in 2015

    MUMBAI: The annual general meeting (AGM) of Reliance Industries was much awaited. With the talk around the company only growing in the past few weeks after it acquired Network18, eyes were fixed on the probable outcome of this meeting. The 40th AGM which was held today, saw RIL chairman Mukesh Ambani highlighting the future of the much awaited 4G broadband network in the country under the brand of  Reliance Jio.

     

    “I had shared the vision of this initiative, Jio- of a digital India- last year and of the unique opportunity that we have to maximise the benefits of the digital age. Digital services will help contribute significantly to the Indian economy and help improve lives of our 1.25 billion countrymen,” he said while addressing shareholders at the AGM.

     

    He also informed the shareholders that limited set of trials for Jio are already underway and the expanded trials would begin from August 2014 which would continue through 2014 and early 2015. “The year 2015 will see the phased launch of Reliance Jio across India. Millions of customers would have started to use the digital platform and services in their daily lives. The fruits of the tremendous value created by this (Jio) Rs 70,000 crore initiative would start to flow,” he stated.

     

    The broadband service will cover all states at launch accounting for 90 per cent urban India and 215,000 villages. Eventually it will cover over 600,000 villages. “They would ensure that every Indian has access to the state-of-the-art digital connectivity and services that are on par with or better than anywhere else in the world,” said Ambani proudly. 

     

    Assuring the shareholders about its future, Ambani emphasised, “Reliance Jio will be one of the largest job-creating and wealth-creating business initiatives in India.” Currently 10,000 full time employees are working on Jio along with 30,000 professionals from Reliance’s partners and vendors across the world. This apart, he said that 100,000 people are working across India in creating the digital infrastructure backbone for the network. “Millions of new entrepreneurs and jobs can be expected to spring up in the tertiary and secondary sectors in new and innovative digital enterprises and services,” he added.

     

    Throwing light on the reason for acquisition of Network18, Ambani said, “The acquisition through an open offer of Network18 media and investments and its subsidiary TV 18 broadcast by Independent Media Trust, the sole beneficiary of which is Reliance Industries is one aspect of the digital services play.” He stated that this would strengthen its 4G business at the intersect of telecom, web and digital commerce and the media through a suit of premiere digital properties.

     

    The reason for strengthening its large projects, one of which is Jio is to get Reliance Industries closer finding its way into the presetigious list of  Fortune 50 companies. He added: “Our efforts and focus over the next two years will be to intensify these initiatives and have them reach out to more citizens across the social spectrum. Reliance will be moving from investing in India’s economic future to integrating deeper with India’s social fabric.” 

     

    The AGM was also significant as it saw the appointment of Mukesh Ambani’s spouse Nita Ambani on the Reliance Industries board. Ambani stated that she was being appointed – as she was an “accomplished individual, the chairperson of the group’s CSR initiative, Reliance Foundation, which has done exceedingly well – “for furthering the group’s growth agenda.”

     

    Industry watchers have been speculating  whether she will have a role to play in the Network18 group, which RIL is in the process of acquiring totally. The megacorp has denied that this “will come to pass, at least for now.”

    Stay tuned in!!!

     

     

     

  • ICRA rerates Network18 and TV18

    ICRA rerates Network18 and TV18

    MUMBAI: Barely a week after independent and professional investment and credit rating agency ICRA revised ratings for Network 18 media and investments (N18) and TV 18 Broadcast (TV18), it has once again upgraded the two companies ratings for enhanced amounts.

     

    Note: Short Term Instruments (All instruments with original maturity within one year) with ICRA A1 rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk. Modifiers {“+” (plus) / “-“(minus)} can be used with the rating symbols for the categories [ICRA]AA(SO) to [ICRA]C(SO). The modifiers reflect the comparative standing within the category.

     

    N18

     

    The short- term rating for Rs 230 crore of ICRA A1+ and long-term rating for Rs 10 crore of ICRA A on enhanced banking facilities of Rs 240 crore (up from Rs 140 crore) has been assigned to N18. The outlook on the long-term rating is ‘positive’.

     

    Additionally, N18’s commercial paper of Rs 100 crore has been assigned as ICRA A1+. The assigned ratings take into account the strong growth in operating profits of N18 (consolidated) in 2013-14 over the previous year, significant reduction in net losses by virtue of favourable impact of cable digitisation, internal cost compression measures and more than halving of interest costs.

     

    The rating agency says “ICRA draws comfort from the diversified offerings of the broadcasting business across genres and expects that the addition of ETV regional channels, post the recent acquisition, will further strengthen the overall operational profile of the company on a consolidated basis. ICRA notes that the Network18’s non-broadcasting businesses continue to experience weak profitability/ losses while some of its existing bouquet of channels may also continue to face profitability pressures arising from rising competitive intensity. Also, in the broadcasting business, there is likely to be recurring need to fund gestation losses in select new channels as also additional investments that may have to be put in for the ETV bouquet of channels.”

     

    TV18

     

    The Rs 200 crore commercial paper programme of TV18 Broadcast has been assigned short-term rating of ICRA A1+. 

     

    The assigned ratings take into account the strong growth in operating profits of TV18 (consolidated) in 2013-14 over the previous year, increase in net profits to Rs 85.6 crore in 2013-14 from a net loss of Rs 42.2 crore in 2012-13 by virtue of favourable impact of cable digitisation, internal cost compression measures and more than halving of interest costs. The ratings continue to draw support from the diversified offerings of the company’s content bouquet across genres and strong market position of the key news and entertainment channels.

     

    Says the rating agency, “ICRA expects that the recent addition of ETVs regional channels into TV18’s content bouquet will further strengthen the overall operational profile of the company. TV18 (consolidated) currently derives a large proportion of its revenues through advertisement income, a revenue stream that tends to be volatile and is a function of economic environment and corporate advertisement budgets. However, the enactment of regulatory framework for digitisation of cable TV Systems in India is expected to increase the quantum and proportion of the relatively more stable subscription income for TV18, going forward. Already, TV18 (consolidated) has seen a strong positive traction in net distribution income having increased to Rs 178 crore in 2013-14 (excluding ETV channels) from minus (-) Rs 102 crore in 2011-12.”

     

    It also states that while TV18’s (consolidated) cash generation is likely to be supported by higher subscription revenues and lower carriage costs by virtue of cable digitisation, it expects continued profitability pressures arising from rising competitive intensity in key business segments, the need to fund gestation losses in select new channels as also additional investments that may have to be put in for the ETV bouquet of channels.

  • Post Reliance Industries’ takeover, ICRA revises Network18’s ratings

    Post Reliance Industries’ takeover, ICRA revises Network18’s ratings

    MUMBAI: It was only a few days ago that Reliance Industries announced the takeover of Network18, and the effects of the acquisition can already be seen. In a statement to the Bombay Stock Exchange (BSE), the media house has said that independent and professional investment and credit rating agency ICRA has revised its current ratings of the company.

     

    Network18 media and investments’ long term rating has been changed from ICRA BBB+ to ICRA A. Meanwhile its short term rating which was at ICRA A2+ is now at ICRA A1+. This for Rs 140 crore bank facilities of the company. “The outlook on the long-term ratings is revised from ‘stable’ to ‘positive’,” states the announcement.

     

    The fixed deposit programme of the company has been revised from MA- to MA with its outlook on the medium term rating revised from ‘stable’ to ‘positive’. The commercial paper of Rs 100 crore of the company was reaffirmed as ICRA A1+.

     

    On the other hand, Network18’s subsidiary TV18 also saw its ratings being revised. The credit rating for the fixed deposit of the company has been revised from MA- to MA with medium term outlook changed from ‘stable’ to ‘positive’.

     

    The long-term rating for bank facilities of Rs 370 crore of the company has from ICRA BBB+ changed to ICRA A. Outlook on long-term rating is revised from ‘stable’ to ‘positive’.

     

    Credit rating for the commercial paper of Rs 200 crore has been reaffirmed as ICRA A1+.

     

    Reliance Industries has now given an open offer that will go on till July.

  • Providence Equity to buy out Star India from Star CJ venture

    Providence Equity to buy out Star India from Star CJ venture

    Mumbai: Star India has been getting out of non-core activities to focus on its  broadcasting (entertainment and sports) and digital businesses. Among the operations it bailed out on figure cable distribution where it exited from Hathway Cable & Datacom and news where it moved out from Media Content & Communication Services (the Star News venture).

     

    Earlier this week, both Korea Bizwire and  Variety.com reported that Star India has decided to sell its 50 per cent stake in the Indian home shopping joint venture venture Star CJ with South Korea’s CJ O Shopping  to Providence Equity Partners following approval from the previous Indian government.  The approval process took close to a year and got the Foreign Investment Promotion Board go-ahead just as the previous government’s tenure was ending.

     

    The quantum that the $40 billion corpus Providence Equity would be paying to buy out Star’s holding was not disclosed but it would be done through a Mauritian subsidiary of the private equity fund. The deal between Star and Providence was signed on 29 May, said the Korea Bizwire report.

     

    The remainder 50 per cent equity will continue to be with CJ O Shopping, which is part of the CJ group.

     

    Both CJ and Star have invested $55 million in the joint venture, which began in 2009 as a six hour slot on Star Utsav, which was then expanded into a 24 hour Star CJ home shopping channel. It reportedly had estimated revenues of about $98 million and can continue to use the Star CJ brand for the next 12 months.

     

    CJO Shopping is optimistic of ramping up business through Star CJ following its bringing in Providence as a “financial partner.”  Providence also owns equity in European home shopping venture  HSE24, apart from having holdings in Indian cable TV distribution company Hathway Cable & Datcom and UFO Moviez.

     

    The move comes at a time when the Network18 (now Reliance Industries) owned HomeShop18 is preparing for a public offering in New York.

  • Now Reliance announces open offer to acquire Network18 group public shareholding

    Now Reliance announces open offer to acquire Network18 group public shareholding

    MUMBAI: The Reliance Industries juggernaut to acquire the Network18 group is chugging ahead after it got board approval to fund its acquisition at a cost of up to Rs 4,000 crore last evening.

     

    Investment banker JM Financial Institutional Securities Ltd has been appointed to manage the open offers to acquire the public shareholdings in the following three Network18 group companies: Network18 Media & Investments (NW18), TV18 Broadcast Ltd (TV18) and Infomedia Press Ltd. This clearly shows the urgency with which Mukesh Ambani wants the acquisition to go through.

     

    In all the three cases it says it is making the open offer on behalf of Independent Media Trust represented by its trustee Sanchar Content Pvt Ltd, together with Reliance Industries Ltd (RIL-PAC1) and Reliance Industrial Investments & Holdings Ltd (RIHL-PAC2).

     

    Both IMT’s and the PACs have offered to fork out Rs 943.70 crore to acquire the remaining 22,99,46,996 shares or 21.96 per cent of the emerging voting capital of NW18 (being the expected equity share capital as of the10th working day after the closure of the tendering period for the offer after considering all potential increase in the number of outstanding Equity Shares on account of outstanding employee stock options) from the public. The price per share of the offer: Rs 41.04.

     

    The sticker price for the TV18 acquisition is expected to be Rs 1,347.57 crore and it envisages the purchase of 44,65,10,110 Equity Shares or 26 per cent of the emerging voting capital  at a price of Rs 30.18 per share.

     

    The Infomedia acquisition is expected to have a total price tag of Rs 3.92 crore and it envisages purchase of 1,30,62,224 Equity Shares or 26 per cent of the emerging voting capital at a price of Rs 3.00 per offer Share.

     

    IMT, Reliance and the PACs have already signed share purchase agreements with Network18 Media promoter Raghav Bahl to acquire his holdings in the various companies through various other investment vehicles.

     

    The JM Financial public offer gives the details in the case of Network18 as follows:

     

    Network18 Media & Investments Ltd

     

    1) In terms of the ZOCD Investment Agreement dated February 27, 2012, IMT subscribed to an aggregate of 22,11,79,894 zero coupon optionally convertible debentures (“ZOCDs”) issued by RRB Mediasoft Private Limited (“RRBMPL”), RB Mediasoft Private Limited (“RBMPL”), RB Media Holdings Private Limited (“RBMHPL”), Watermark Infratech Private Limited (“WIPL”), Colorful Media Private Limited (“CMPL”) and Adventure Marketing Private Limited (“AMPL”). RRBMPL, RBMPL, RBMHPL, WIPL, CMPL and AMPL are together referred to as the “Holding Companies”. A part of the proceeds from the issuance of the ZOCDs aggregating Rs  2,076.34 crore was deployed by the Holding Companies to subscribe to 69,21,11,850 Equity Shares issued by NW18 on a rights basis to its then existing shareholders vide letter of offer dated August 31, 2012. The remaining proceeds from the issuance of the ZOCDs aggregating to Rs 135.46 crore was deployed by the Holding Companies to subscribe to 6,77,31,686 equity shares issued by TV18 Broadcast Limited (“TV18”) on a rights basis to its then existing shareholders vide letter of offer dated 31 August 2012. Pursuant to the aforesaid rights issuance by NW18 and TV18, the Holding Companies held and continue to hold 74,61,88,987 Equity Shares representing 71.25 per cent of the Emerging Voting Capital and 6,77,33,486 equity shares representing 3.96 per cent of the outstanding equity share capital in TV18.

     

     

    2)  In accordance with the terms of the SPA, IMT shall acquire 100 per cent of the outstanding equity shares in each of the Holding Companies from Mr.Raghav Bahl and Ms. Ritu Kapur for an aggregate consideration of  Rs 705.96 crore.

     

     

    3)  IMT shall additionally acquire 100 per cent of the outstanding equity shares in RB Holdings Private Limited (“RBHPL”) from Raghav Bahl and Ritu Kapur for an aggregate consideration of Rs 1.00 crore.

     

     

    4)  Further in accordance with the terms of the SPA, IMT shall extend loans aggregating to Rs  43.08 crore to the Holding Companies which shall in turn be deployed by the Holding Companies to repay certain of its outstanding liabilities. IMT shall also extend a loan of Rs 304.94 crore to RBHPL which shall in turn be deployed by RBHPL to repay certain of its outstanding liabilities.

     

     

    5)  The consideration for the transaction i.e. Rs 3,266.78 crore is the aggregate of the sums specified in (1) i.e. Rs 2,211.80 crore, (2) i.e. Rs 705.96 crore, (3) i.e. Rs 1.00 crore and (4) i.e Rs 348.02 crore (“Transaction Consideration”). This Transaction Consideration is for the indirect acquisition of:

     

     

    a)  74,61,88,987 Equity Shares (representing 71.25 per cent of the Emerging Voting Capital) held by the Holding Companies at a price per share of ` 41.04 amounting to Rs 3,062.36 crore; and

     

     

    b)  6,77,33,486 equity shares of TV18 (representing 3.96 per cent of TV18’s outstanding equity share capital) held by the Holding Companies at a price per share of Rs  30.18 amounting to Rs 204.42 crore

     

    In the case of TV18, the open offer specifies that:

     

    TV18 Broadcast Ltd

     

    1) The number of Equity Shares over which voting rights have been acquired is 94,47,68,548 Equity Shares being the aggregate of (a) and (b) below

     

     

    (a)  87,70,35,062 Equity Shares representing 51.07 per cent of the Emerging Voting Capital held by NW18; and

     

     

    (b)  6,77,33,486 Equity Shares representing 3.94 per cent of the Emerging Voting Capital held by the RRB Mediasoft Private Limited (“RRBMPL”), RB Mediasoft Private Limited (“RBMPL”), RB Media Holdings Private Limited (“RBMHPL”), Watermark Infratech Private Limited (“WIPL”), Colorful Media Private Limited (“CMPL”) and Adventure Marketing Private Limited (“AMPL”). RRBMPL, RBMPL, RBMHPL, WIPL, CMPL and AMPL are together referred to as the “Holding Companies”.

     

     

    2) The number of Equity Shares over which economic ownership has been acquired is 69,29,88,887 Equity Shares (“TV18 Economic Ownership Shares”) being the aggregate of (a) and (b) below

     

     

    (a) 6,77,33,486 Equity Shares held directly by the Holding Companies ; and

     

     

    (b) 62,52,55,401 Equity Shares (71.29 per cent of the number of Equity Shares held by NW18)

     

     

     

    (3)  The Offer is pursuant to an indirect acquisition by IMT of shares, voting rights and control over NW18 under the SPA.

     

     

    (4)  In terms of the ZOCD Investment Agreement dated February 27, 2012, IMT subscribed to an aggregate of 22,11,79,894 zero coupon optionally convertible debentures (“ZOCDs”) issued by the Holding Companies. A part of the proceeds from the issuance of the ZOCDs aggregating Rs 2,076.34 crore was deployed by the Holding Companies to subscribe to 69,21,11,850 Equity Shares issued by NW18 on a rights basis to its then existing shareholders vide letter of offer dated August 31, 2012. The remaining proceeds from the issuance of the ZOCDs aggregating to Rs 135.46 crore was deployed by the Holding Companies to subscribe to 6,77,31,686 equity shares issued by TV18 on a rights basis to its then existing shareholders vide letter of offer dated August 31, 2012. Pursuant to the aforesaid rights issuance by NW18 and TV18 the Holding Companies held and continue to hold 74,61,88,987 equity shares representing 71.29 per cent of the outstanding equity share capital in NW18 and 6,77,33,486 Equity Shares representing 3.94 per cent of the Emerging Voting Capital.

     

     

    (5)  In accordance with the terms of the SPA, IMT shall acquire 100 per cent of the outstanding equity shares in each of the Holding Companies from Raghav Bahl and Ritu Kapur for an aggregate consideration of Rs 705.96 crore.

     

     

    (6)  IMT shall additionally acquire 100 per cent of the outstanding equity shares in RB Holdings Private Limited (“RBHPL”) from Raghav Bahl and Ritu Kapur for an aggregate consideration of Rs 1.00 crore.

     

     

    (7)  Further in accordance with the terms of the SPA, IMT shall extend loans aggregating Rs 43.08 crore to the Holding Companies which shall in turn be deployed by the Holding Companies to repay certain of its outstanding liabilities. IMT shall also extend a loan of Rs 304.94 crore to RBHPL which shall in turn be deployed by RBHPL to repay certain of its outstanding liabilities.

     

     

    (8)  The consideration for the transaction i.e Rs 3,266.78 crore is the aggregate of the sums specified in (4) i.e Rs 2,211.80 crore, (5) i.e Rs 705.96 crore, (6) i.e Rs 1.00 crore and (7) i.e Rs 348.02 crore (“Transaction Consideration”). This Transaction Consideration is for the indirect acquisition of (a) 74,61,88,987 equity shares of NW18 (representing 71.29 per cent of NW18’s outstanding equity share capital) held by the Holding Companies at a price per share of Rs 41.04 amounting to Rs 3,062.36 crore; and (b) 6,77,33,486 Equity Shares (representing 3.94 per cent of the Emerging Voting Capital) held by the Holding Companies at a price per share of  Rs 30.18 amounting to Rs 204.42 crore Per share price of TV18 taken into account in the acquisition of NW18 equity shares (at share price of Rs 41.04 for every NW18 equity share) is  Rs 30.18. Accordingly the consideration attributable out of the Transaction Consideration for the TV18 Economic Ownership Shares (i.e 69,29,88,887 Equity Shares) at a per share price of Rs 30.18 amounts to Rs 2,091.44 crore.

     

  • Reliance Industries gets board approval to fund Network18 group acquisition

    Reliance Industries gets board approval to fund Network18 group acquisition

    MUMBAI: We predicted that the executive exodus at Network18 was a precursor to Reliance Industries Ltd (RIL) engineering an acquisition. (Read: More Network18 senior management to exit as Reliance begins to take full control) of the Raghav Bahl led Network18 Media.

     

    And it has turned out to be true. RIL, late this evening, announced to the BSE that it has got board approval to pump in Rs 4,000 crore into the Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network18 Media & Investments Ltd (NW18), including its subsidiary TV18 Broadcast Ltd (TV18) and the open offers to be made consequent to the acquisition.

     

    NW18, as is known is the owner of a premier suite of digital internet properties, ecommerce businesses, and differentiated broadcast content.

     

    IMT is expected to use the funds to acquire control over NW18 and TV18 resulting in the ownership of about 78 per cent in the former and 9 per cent in the latter and to acquire shares tendered in the open offers.

     

    Further in terms of SEBI (substantial acquisition and takeover regulations) 2011, IMT would be making an open offer to public shareholders for acquisition of NW18, TV18 and Infomedia Press Ltd equity shares. IMT would be simultaneously making a public announcement under takeover regulations. RIL would be a person acting in concert to the open offers.

     

    The acquisition will help differentiate the RIL 4G business, says the press release, by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties. The suite includes: in.com, IBNLive.com, Moneycontrol.com, firstpost.com, cricketnext.in, HomeShop18, bookmyshow.com. The broadcast channels include: Colors, CNNIBN, CNBCTV18, IBN7 and CNBC Awaaz. 

     

    “It was bound to happen,” says a media observer. “Mukesh Ambani has made a huge 4G play. He needs content to be pumped over the network to make the 4G investment pay off more, because consumers need video on 4G. By acquiring the NW18 and TV18 properties, he’s got a quick entry into the content and ecommerce space.  However, RIL, which, is very financially driven, will do well to leave the content creators alone and not try and force too much financial efficiencies onto them. If they do allow the creative to flow with some financial caution as is the practice in NW18 and TV18 group, then they could well have a robust, differentiated content business. Otherwise…”