Shares of Network 18 jumped 6% to Rs 47.90 after Mukesh Ambani-controlled Reliance Industries Ltd (RIL) plans to acquire a majority stake in Raghav Bahl’s Network18 Media and Investments and its subsidiary TV18 Broadcast through Independent Media Trust (IMT), of which RIL is a sole beneficiary.
The RIL board on Thursday approved funding of up to Rs 4,000 crore to IMT, which will use the funds to acquire a 78 per cent stake in Network18, a nine per cent stake in TV18 and shares tendered in an open offer to be made for public shareholders’ equity stake in Network18, TV18 and Infomedia Press Ltd (the publishing arm of Network18).
The acquisition, according to sources, was triggered after the debt was converted into equity. As part of the deal, a memorandum of understanding was signed between RIL’s broadband subsidiary, Infotel, and the Network18 Group for ‘preferential’ access to all web and media properties of Bahl’s media network.
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Network18 Media and TV18 control a suite of broadcasting channels like CNBC-TV18, Viacom18 and CNN-IBN, besides a bevy of e-commerce businesses and digital internet sites.
The stock opened at Rs 53 which is also the high for the day so far. Over 5.2 million shares were traded on both the stock exchanges so far.
