 "NCLT grants final approval for merger of TV18 and E18 into Network18")
The Mumbai bench of the National Company Law Tribunal (NCLT) has granted its final approval for the merger of TV18 Broadcast and e-Eighteen.com (E18) into Network18 Media and Investments, a company backed by Reliance Industries Ltd (RIL), according to a report by The Economic Times.
This approval comes ahead of a larger consolidation effort, with RIL’s Indian media businesses merging with Walt Disney’s operations to form the country’s biggest media and entertainment entity. The merger recently received clearances from both the Competition Commission of India (CCI) and the NCLT.
Once the merger with Network18 is fully approved by the Ministry of Information and Broadcasting (MIB), both E18 and TV18 will cease to exist as separate entities.
In its September 5 ruling, the NCLT instructed the involved companies to submit copies of the order and the merger scheme to the Registrar of Companies within 30 days and to the Superintendent of Stamps within 60 days for stamp duty adjudication, the report said.
The tribunal also directed other regulatory bodies to take necessary actions based on the certified copies of the order and the merger scheme.
TV18, a publicly listed company, holds a 13.54 per cent stake in Viacom18, which is currently merging with Disney's Star India. Meanwhile, E18, a privately held subsidiary of Network18, operates the news platform Moneycontrol, the report said.
During Reliance Industries’ annual general meeting on August 29, Chairman Mukesh Ambani emphasised that Network18 has become a leader in both general and business news and is the sole Indian network with global ambitions.
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The newly merged entity will comprise TV18’s 20 news channels in 16 languages, along with Network18’s digital platforms. As of Tuesday, Network18’s market capitalisation stood at Rs 9,442 crore, while TV18’s market cap was Rs 8,348 crore.
As part of the merger terms, TV18 shareholders will receive 100 Network18 shares for every 172 shares they hold in TV18, while E18 shareholders will be allotted 19 Network18 shares for each E18 share they own, the report said.