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MUMBAI: Raghav Bahl-promoted Network18 Group has today completed the realignment of the businesses into two focused entities ? Network18 and TV18.
The company said Monday that 22 June has been set as the record date for the same.
The scheme of arrangement, between Television18 India Ltd, Network18 Media & Investments Limited, IBN18 Broadcast Ltd and other group companies and their respective shareholders and creditors, was announced pursuant to the approval of the Board of directors of the aforementioned companies on 7 July 2010.
The Delhi High Court, on 26 April, had approved the scheme of arrangement, Network18 said.
Network18 founder and MD Bahl said, ?I am delighted that this process has been completed. The optimisation of the group structure heralds a new growth phase in our journey and will help catalyse value creation for all our stakeholders.?
As per the new scheme, the Network18 Group will now be re-organised into two entities ? TV18 and Network18. The newly constituted TV18 (current listed entity - Ibn18 Broadcast after being re-named TV18 Broadcast) will operate all the television broadcasting and distribution assets.
These include business news channels ? CNBC TV18 and CNBC Awaaz; general news channels ? CNN IBN and IBN 7; 50 per cent stake in Viacom18 which houses portfolio of entertainment channels ? Colors, MTV, Nick and Vh1 and filmed entertainment business ? Viacom18 Motion Pictures; 50 per cent stake in IBN Lokmat and its 51 per cent stake in AETN18.
Meanwhile, Network18 Media and Investments Limited (Network18) will operate all the digital and eCommerce assets including content properties - moneycontrol.com and in.com (Web18 operating assets); ecommerce properties ? HomeShop18 and bookmyshow.com and publications like Forbes India.
In addition, Network18 will continue to own a controlling interest in TV18 and house equity interests in Infomedia18, NewsWire18, Yatra, DEN Networks Limited (to be held directly by Network18 henceforth) and Capital18 portfolio companies. All the allied operating businesses including Sport18 and E18 will continue to be in Network18.
Also, post the merger, the shares of one of currently listed entities TV18 will be extinguished and the shareholders of this company as on 22 June will be entitled to receive shares in the re-organised Network18 and TV18 as per the share swap ratio announced earlier. As per the ratio, shareholders holding 100 equity shares of TV18 will be allotted 13 equity shares in Network18 and 68 equity shares in New TV18 respectively.
