Network18 to bring broadcast biz under one entity

aman1987

Aman Jatt
[FONT=Verdana, Arial, Helvetica, sans-serif]MUMBAI: Overhauling the organisational structure, Network18 founder-promoter Raghav Bahl said Wednesday the media businesses will be realigned under two listed enties housing broadcast and digital and publishing units separately.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]The broadcast business of TV18, including the business news channels, will be transferred to 1BN18 and the entity will be called New TV18. [/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]Network18 said TV18 shareholders will get 68 shares of IBN18 and 13 shares of company for every 100 held. TV18 will be absorbed under IBN18 and be delisted.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]The broadcast business (New TV18) will, thus, have CNBC-TV18, CNN-IBN, IBN7, CNBC-Awaaz, Viacom18 channels (Colors, MTV, Vh1 and Nick) and IBN Lokmat. It will also have the teleport business. [/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]IBN18 currently holds 50 per cent in Viacom18 and IBN Lokmat.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]The plan is also to have the filmed entertainment business under Viacom18. Network18 will sell its 80.4 per cent stake in AIM-listed The Indian Film Company to Viacom18.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]"If Network18 gets the right value, it will exit from the film business. We will get it under Viacom18 as there is a lot of synergy in content between the entertainment channels and the film business," said Bahl.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]Network18 will hold 58 per cent in NewTV18. It will also convert into an operating company and hold all group investments in HomeShop18 (51 per cent), Newswire18 (70 per cent), Capital18 (100 per cent), Setpro (66 per cent), Infomedia (press where it will hold 48.11 per cent), Den Networks (8 per cent) and Yatra (17 per cent). [/FONT]
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[FONT=Verdana, Arial, Helvetica, sans-serif]Indiantelevision.com was the first to report that Network18 Group was planning to bring its broadcast business under one entity while Network18 would house the other activities. [/FONT]

[FONT=Verdana, Arial, Helvetica, sans-serif]Infomedia18 will transfer [COLOR=blue !important][COLOR=blue !important]yellow [COLOR=blue !important]pages[/COLOR][/COLOR][/COLOR] and magazines to Network18 but retain all printing press operations.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]"The listed entity of Infomedia will only have the printing press. We are looking for a buyer and will exit from Infomedia (press) the moment we get one," said Bahl.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]The shareholders of Infomedia18 will retain their existing shares in the company. They will also get additional 14 shares of Network18 for every 100 shares they hold.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]Network18 group, which currently has five listed entities - Network18, Television 18, IBN18, Infomedia18 and The Indian Film Company - plans to delist TV18, Infomedia and TIFC as part of the restructuring plan.[/FONT] [FONT=Verdana, Arial, Helvetica, sans-serif]"The new structure will offer shareholders the choice of investing in either the entire Network18 Group or only in the broadcast TV business. It will also create opportunities for harnessing greater operational synergies," Network18 said.[/FONT]
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[FONT=Verdana, Arial, Helvetica, sans-serif]The company said that the restructuring, which is effective 1 April, will create an eight per cent treasury block in the new Network18, which will be held in a trust, to be appropriately monetized for the benefit of shareholders.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]"All the future television businesses will fall under TV18. We have created a structure like Zee. We are ahead of them so far as advertising revenues go. Our focus will be to increase subscription revenues," Bahl said.[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]BMR Advisors acted as financial advisers for the deal, while Grant Thornton did the [COLOR=blue !important][COLOR=blue !important]valuation[/COLOR][/COLOR].[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]Network18 shares rose 2.49 per cent to close at Rs 164.4 on the BSE, while Informedia18 went down by 4.55 per cent to Rs 32.50. TV18 and IBN18 shares closed slightly lower in a weak Mumbai market.

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