Ogilvy and Mather Ltd (O&M)'s stake in Mumbai-based More Group India Ltd -- known for promoting specialised outdoor communications under the brandname ADSHEL -- is falling below 3 per cent following a fresh preferential allotment to Clear Channel Pacific Pte Ltd, Singapore (previously More Communications Asia Pte, Ltd).
O&M originally held 30 per cent in the joint venture. According to sources, the board of the company has agreed to offer 9,600,000 equity shares of Rs 10 each aggregating to Rs 9.6 crore to Clear Channel Pacific, thereby increasing its shareholding in the capital of the company to 97.06 per cent.
O&M will hold the remaining 2.94 per cent. The sources also pointed out that though O&M originally held 30 per cent, its shareholding had subsequently come down to 14.56 per cent in June 2000, when Clear Channel bought the stakes held by Aaren Advertising Ltd, another original promoter, as well as some shares held by O&M.
Thereafter, in December 2000, Clear Channel once again increased its shareholding to 94.45 per cent bringing down O&M's shareholding to 5.55 per cent.
O&M officials were not available for comments. The non-resident shareholding in the Indian venture is being increased as the company finds a huge market potential for outdoor specialised communication media.
More Group India is already engaged in the business and has been acquiring conducting rights for billboards and other outdoor advertising medium. It also participates in various outdoor advertising related tenders, which are being put up for bidding by various government and local municipal authorities.
Sources said the company has implemented the project of building and is now operating 49 bus shelters in Bangalore. It has also acquired advertising rights from the Southern Railways for building and operating glow signs and advertisement panels on railway under-bridges in Bangalore and it has also acquired advertisement rights from Northern Railway for Chandigarh.
"Implementing all these projects and more will entail more investments and the preferential allotment is aimed at that direction," the sources added.
