NDTV plans demerger for focused growth

News and entertainment broadcaster New Delhi Television Ltd (NDTV) today said it was evaluating options to restructure the company, including the demerger of its news-related businesses into a separate entity.

The reorganisation could include demerger/ split of the company into news-related businesses and investments in 'beyond news' businesses, which are currently held through its subsidiary NDTV Networks Plc.

NDTV Networks holds the company's news, entertainment, lifestyle channels and digital media business, including NDTV Imagine, NDTV Lifestyle and NDTV Labs.

The creation of focused entities would also enable it to bring in strategic and financial partners, who have been in discussion with the company from time to time, it said in a filing to the Bombay Stock Exchange (BSE).

The move was aimed at unlocking shareholder value and for promoting focused growth of its various businesses, the filing added.

In this regard, the company has decided to constitute a committee to evaluate various options.

These decisions were taken by its board of directors during its meeting held today. The shares of the company closed at Rs 407.95 at the BSE, up 1.20 per cent from its previous close.

Soon after the announcement, over 12 per cent of the company's shares changed hands in bulk deals on BSE.

Goldman Sachs Investments Mauritius and FID Funds Mauritius bought 12.48 per cent share in the company for Rs 338.25 crore. Promoters of the company, Prannoy Roy and Radhika Roy, together sold 7.86 per cent stake for Rs 213.76 crore.

According to data from the Bombay Stock Exchange, Prannoy and Radhika held 61 per cent stake in the company till the end of the quarter ended December 31, 2007.