MUMBAI: In a communique to the National Stock Exchange of India and BSE on 3 July signed by Network 18 company secretary Ratnesh Rukhariyar, the company has disclosed information regarding restructuring of Burrp.

"This has reference to our letter dated 19 April 2017 regarding restructuring of Company's business of food and restaurant search and recommendation engine operated under the name of Burrp," the communique stated.

"The company, on 3 July, 2017, has entered into a Business Transfer Agreement with Foodfesta Wellcare Private Limited (FWPL) (a subsidiary of Big Tree Entertainment Private Limited ('Big Tree')) for transfer of Burrp undertaking as a going concern on slump sale basis. The transfer will be effective 1 July, 2017," it added.

Big Tree is an associate and a related party of the Company. Big Tree is also an associate of Reliance Industries Limited, a promoter group company. Big Tree owns and operates the popular ticketing platform 'Book My Show' and Burrp will be a natural fit in its portfolio.

"Burrp's revenue during FY 201.6-17 was Rs. 56.67 lakhs accounting for 0.69% of Company's turnover. The net worth as on 31•' March 2017 stood at a negative Rs. 2889.55 lakhs. Considering the insignificant contribution of Burrp to the revenue of the Company and the investments and the focus required to be made, the Company considered and decided to divest Burrp business," it added.

The consideration for the slump sale is Rs. 6.70 lakhs and has been determined on the basis of valuation carried out by Ernst & Young LLP. The transaction is at arms' length basis and being a slump sale does not have any impact on the shareholding pattern of the Company.