Network 18 closes day up 20 per cent as RIL set to take control
Shares of Network18 Media and Investments soared 20% at Rs 54.15 on Friday — the highest permissible trading level for the day
By ET Bureau | Updated:
MUMBAI: Shares of Network18 Media and Investments soared 20% at Rs 54.15 on Friday — the highest permissible trading level for the day— after Reliance Industries announced the takeover of the media group, triggering open offers to public shareholders.
Independent Media Trust (IMT), of which RIL is the sole beneficiary, announced an open offer to buy up to 22.99 crore shares, constituting the remaining 21.96% of the voting capital in Network18. The open offer price for public shareholders of Network18 has been set at Rs 41.04 per share, compared with Thursday’s closing share price of Rs 45.15.
IMT has also made an open offer for a 26% stake in TV18 Broadcast, a subsidiary of Network18, at Rs 30.18 per share, compared with Thursday’s closing price of Rs 34.95. TV18 shares gained 0.6% to close at Rs 35 on Friday.
Reliance Industries declined by 0.7% to close at Rs 1,065 on Friday. Reliance has approved funding of up to Rs 4000 crore to IMT for acquisition of control in Network18 and TV18 Broadcast.
Network18 Group runs a numbers of news and entertainment channels, some of which compete with channels belonging to Bennet Coleman & Company (BCCL), the owner of this newspaper. IMT will buy 100% of the shares in each of the holding companies of Raghav Bahl and Ritu Kapur, the original promoters of Network18 group, for Rs 705.96 crore, a statement from Network18 on BSE said.
These holding companies own Bahl and Kapur’s stakes in Network18. As per the open offer document, IMT will extend loans to the tune of Rs 348 crore to these holding companies, which will use it to pay liabilities. Separately, Bahl and Kapur, in a letter to Network18 employees, announced they were stepping down from their roles as managing director and director, respectively, in the company.
"We are also delighted to welcome Mr Mukesh Ambani and RIL as the potential owners of Network18," said Bahl and Kapur. "Believe us, the Group is in terrific hands. Mr Ambani is a visionary and truly good human being. And we have no doubt that Network18 would soar into the "cloud" under this dispensation," they said, while adding "God bless you, and God bless Network18".
Independent Media Trust (IMT), of which RIL is the sole beneficiary, announced an open offer to buy up to 22.99 crore shares, constituting the remaining 21.96% of the voting capital in Network18. The open offer price for public shareholders of Network18 has been set at Rs 41.04 per share, compared with Thursday’s closing share price of Rs 45.15.
IMT has also made an open offer for a 26% stake in TV18 Broadcast, a subsidiary of Network18, at Rs 30.18 per share, compared with Thursday’s closing price of Rs 34.95. TV18 shares gained 0.6% to close at Rs 35 on Friday.
Reliance Industries declined by 0.7% to close at Rs 1,065 on Friday. Reliance has approved funding of up to Rs 4000 crore to IMT for acquisition of control in Network18 and TV18 Broadcast.
Network18 Group runs a numbers of news and entertainment channels, some of which compete with channels belonging to Bennet Coleman & Company (BCCL), the owner of this newspaper. IMT will buy 100% of the shares in each of the holding companies of Raghav Bahl and Ritu Kapur, the original promoters of Network18 group, for Rs 705.96 crore, a statement from Network18 on BSE said.
These holding companies own Bahl and Kapur’s stakes in Network18. As per the open offer document, IMT will extend loans to the tune of Rs 348 crore to these holding companies, which will use it to pay liabilities. Separately, Bahl and Kapur, in a letter to Network18 employees, announced they were stepping down from their roles as managing director and director, respectively, in the company.
ADVERTISEMENT
"We are also delighted to welcome Mr Mukesh Ambani and RIL as the potential owners of Network18," said Bahl and Kapur. "Believe us, the Group is in terrific hands. Mr Ambani is a visionary and truly good human being. And we have no doubt that Network18 would soar into the "cloud" under this dispensation," they said, while adding "God bless you, and God bless Network18".
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
