Network18 Media & Investments Ltd is all set to simplify its corporate structure and cut the number of cross-holdings in the group. At present, the group has five listed companies and it is contemplating to bring down the number to two, said sources.
Network18 has informed stock exchanges that following a meeting of the board of directors on July 7, it would consider a restructuring proposal through a scheme of arrangements.
According to media analysts, the restructuring will make the group structure simpler and align businesses logically. Promoters' holdings in Network18 is expected to come below 51 per cent after the move. Network18 CEO Haresh Chawla did not respond to phone calls or SMS sent on his mobile phone.
"The five listed companies - Network18, Infomedia18, TV18, IBN18 and The Indian Film Company - will be restructured into two listed entities. The two companies will be divided based on TV and non-TV entities. Network18 will own controlling stake in the TV business and will hold other operating assets of the group. Network18 will subsequently become a holding-cum-operating company," said a Mumbai-based analyst who did not want to be named.
