Raghav Bahl-promoted Network18 has entered into a definitive agreement with Samara Capital to divest its entire stake in the financial data and news terminal business – NewsWire18.
Network18 will get Rs 90 crores for its entire stake in the business. The transaction is expected to add approximately Rs 70 crores to Network18’s consolidated pre-tax profit for the current quarter.
The move is in line with its stated objective of divesting non-core assets profitably to allow greater focus on its core television and digital businesses.
Network18 was the majority shareholder in NewsWire18, having incubated the company with the founding CEO, Pankaj Aher and his team.
NewsWire18 will also be rechristened over the next 90 days as a result of the transaction.
Raghav Bahl, Managing Director, Network18 said, “The divestiture of Newswire18 is a reflection of our commitment to profitably monetise non-core assets for the benefit of our shareholders and to also facilitate the growth of these businesses to the next level."
Sai Kumar, Group CEO, Network18 added, “The growth at NewsWire18 is a reflection of Network18’s business building skills and the value that our network eco-system brings to a business. We would like to give Pankaj and his team and Samara Capital our best wishes as they embark on the next phase of their journey.”
Earlier during the year, Network18 had sold its stake in one of the Capital18 investee companies – NetworkPlay and then partially diluted its stake in –
Bookmyshow.com.
BMR Advisors acted as the sole transaction adviser to Network18.
