RIL makes open offer for 22% stake in Network18 - Livemint

In a notice to the BSE, RIL said its unit Independent Media Trust (IMT) would make an offer to acquire around 230 million equity shares, constituting the remaining 21.96% of voting capital in Network18. Photo: Mint

In a notice to the BSE, RIL said its unit Independent Media Trust (IMT) would make an offer to acquire around 230 million equity shares, constituting the remaining 21.96% of voting capital in Network18.

The open offer price has been set at Rs.41.04 per share, compared with Thursday’s closing share price of Rs.45.15. IMT has also made an open offer for a 26% stake in TV18 Broadcast Ltd at Rs.30.18 per share, compared with Thursday’s closing price of Rs.34.95.

At 12.51pm, Network18 Media and Investment was trading at Rs.47.8 on BSE, up 5.87%. Shares in TV18 Broadcas fell 2% to Rs.34.20. The benchmark Sensex index was trading at 24,244.58, up 0.04%.

Seperately, in a letter addressed to the team at Network18, founder and managing director Raghav Bahl and his wife and director Ritu Kapur wrote, “Ritu and I have effectively ended our entrepreneurial leadership of NW18 by agreeing to exit our shareholding (although I would be around to ensure a smooth transition).”

“We are also delighted to welcome Mr. Mukesh Ambani and RIL as the potential owners of Network18. Believe us, the group is in terrific hands,” said Bahl’s letter, which ended by saying “God bless you and God bless Network18.”

The open offer document suggests that Reliance will pay Bahl Rs.1,054.98 crore of which Rs.348.02 crore will be used by the latter to clear dues, leaving him with a payout Rs.706.96 crore.

According to the document, IMT shall acquire 100% 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. IMT will pay a further Rs.1 crore to acquire 100% in RB Holdings Pvt. Ltd, and extend loans of an aggregate of Rs.348.02 crore to two seperate entities.

RIL on Thursday announced that it was taking complete control of Network 18 Media and Investments, including its subsidiary TV18 Broadcast.

Founded by Bahl, Network18 is one of India’s largest media companies, which owns television channels CNBC TV18, CNN-IBN, CNBC Awaaz; websites Moneycontrol.com, firstpost.com; print magazines Forbes India, Overdrive; general entertainment channel Colors and Homeshop18, a television and Internet retail venture, among various other media and non-media businesses.

In a statement sent to the BSE on Thursday, RIL said: “The Board of Reliance Industries Ltd today (on Thursday) approved funding of Rs.4,000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary,” for taking over Network18.

“IMT would use the funds to acquire control over NW18 and TVE18 resulting in ownership of about 78% in NW18 and 9% in TV18 and to acquire shares tendered in the open offers.”

Promit Mukherjee contributed to this story.

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