Jagran eyes majority stake in Pioneer

In its second attempt to enter the English newspaper market, the Kanpur-based Jagran Group is eyeing The Pioneer, the English daily controlled by its editor-in-chief Chandan Mitra.

The Rs 480-crore Jagran Group, whose talks with The Statesman fell through on account of operational issues, is now negotiating with The Pioneer for purchase of a majority stake.

At the same time, the group, which publishes widely-circulated Hindi daily Dainik Jagran, is exploring buy-outs among regional language newspapers and magazines.

The group has created a war-chest of Rs 80 crore out of the Rs 320 crore it mopped up in its initial public offer in December last year.

"There has been a definite expression of interest between the Jagran Group and The Pioneer's promoters for the sale of equity. There were a few meetings, but it is premature to comment on the valuation etc. We would, however, prefer picking up a majority stake," said a Jagran Group executive.

Mitra, the majority shareholder in The Pioneer, confirmed the development. "We are negotiating with the Jagran Group but not on an exclusive basis. We are in talks with four to five companies, which include media houses as well as venture capitalists," he said.

While declining to name the other contenders, Mitra said a Mumbai-based financial consultant had been commissioned to assess the value of the company and the offers.

The Jagran executive said the group's talks with The Statesman fell through because of "operational and other issues" and not on the ground of valuation.