Jagran-Pioneer talks fall through

Kanpur-based publishing house Jagran Prakashan's plans to enter the English newspaper segment have once again been thwarted.

Its talks with Delhi-based publication, the Pioneer, hit a roadblock with the Pioneer management refusing to part with the controlling stake to Jagran.

Last year, Rs 480-crore Jagran Group, whose flagship brand is Dainik Jagran, was in talks for buying an equity stake in The Statesman. However, the deal fell through because of operational and other issues.

After several rounds of meetings, the deal got stuck as Jagran wanted over 51 per cent stake at a high valuation in the Pioneer, which the owners of the English newspaper refused to part with, said an industry source close to the development.

When contacted, Mahendra M Gupta, chairman and managing director, Jagaran Prakashan, said, "I cannot comment on specific targets but regional language and English publications are on the radar. We would be willing to look at any title in any language in any genre to ensure a pan-India footprint for our company."

The group has already created a war chest of Rs 80 crore from the Rs 320 crore it had mobilised during the initial public offering in December last year.

When asked about the specifications Jagran will look for in an acquisition, Gupta said the company would look for 'a majority stake' in a 'good product' which have the potential to generate advertising revenues at national level."

Chandan Mitra, editor-in-chief, the Pioneer, and managing director of CMYK Printech, declined to comment on the development. He, however, confirmed that the Pioneer was planning to dilute its equity to fund the expansion plans and was in talks with a few venture capitalists.

The Jagran group may launch a bilingual newspaper and has commissioned IMRB to conduct a feasibility study, stated an industry expert.