VNU, the $2.8 billion Dutch media and information conglomerate, will increase its stake in the hitherto Ashok Advani-controlled ORG-Marg from 74 per cent to 79 per cent.
VNU will do so by acquiring 11,355 shares of Rs 100 each, representing 5 per cent of the shareholding in the market research company, from K M S Ahluwalia, another shareholder in ORG-Marg.
ORG-Marg had earlier been granted foreign participation up to 74 per cent by the Foreign Investment Promotion Board (FIPB) amounting to $12 million. The present increase in stake by VNU has also been cleared by the board as the proposal had the consent of Ahluwalia.
The quantum of shareholding left with Advani and Ahluwalia after the present hike in stake by VNU is not known as both of them had divested their stakes in favour of the Dutch group in the past.
However, Marg Employees Welfare Trust would still be holding about 4 per cent stake in ORG-Marg. In the beginning, Ahluwalia had 30 per cent stake in the company.
According to published reports, Advani's investment of about Rs 4.2 crore in ORG-Marg has paid off handsomely over the years. The returns, through divestment of stake, is estimated to be in the region of Rs 120 crore. ORG-Marg is looking at a pan-Asian role and has already made its presence felt outside India through joint ventures in Bangladesh, Nepal and Sri Lanka. It is also looking at life beyond market research in areas where VNU specialises.
VNU first appeared on the ORG-Marg scene in 1996 when it acquired a 26 per cent stake in the company as the then cash-strapped Business India Group needed funds to keep running its television venture through BITV.
