Geodesic to buy Chandamama for Rs 10 crore

MUMBAI: Geodesic, the Mumbai-based software services provider, will buy out 94% stake in popular children’s magazine publisher Chandamama for Rs 10.02 crore. ET was the first to report that the publication was up for sale in its edition dated August 8, 2006. The company is now in talks to acquire the remaining 6%, which is with individual shareholders.

Chandamama, a monthly magazine started by filmmakers B Nagi Reddy and Chakrapani in 1947, is 60% held by the Reddy family and former Morgan Stanley managing director Vinod Sethi. The Tatas and Dabur group also hold some stake.

Geodesic MD Kiran Kulkarni said the stake sale would be a cash-cum-stock transaction. The cash component for the deal would amount to Rs 1.6 crore. In a notification to BSE on Tuesday, the Mumbai-based IT company said that it would issue of 313,843 equity shares of Rs 2 each at a price of Rs 265 per share to the shareholders on a swap basis as a part of the acquisition.

Geodesic is planning a makeover for the children’s magazine, now in its 60th year now, by making its content available on Internet and mobile media. The company plans to form a new media section within Chandamama and hire people for it.