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Reliance Industries Limited (RIL) has inked an agreement with TV18
Broadcast Limited (TV18) to divest part of its stake in Ushodaya
Enterprises, owner of the ETV bouquet of channels.
Reliance Industries Limited (RIL) has inked an agreement with TV18 Broadcast Limited (TV18) to divest part of its stake in Ushodaya Enterprises, owner of the ETV bouquet of channels. RIL will divest a 100 per cent stake in the regional news channels, 50 per cent in the non-Telugu entertainment channels and 24.5 per cent in the Telugu channels for Rs 2,100 crore.
It will indirectly fund part of the acquisition by investing around Rs 1,700 crore in optionally convertible debentures issued by the promoter companies of Network18 and TV18. These funds will be used by the companies to subscribe to rights issues by Network18 and TV18. In turn, TV18 will use these funds to buy RIL's stake in ETV, settle debt and meet working capital needs. The acquisition will enable TV18 to compete with rivals on a regional platform. RIL will gain access to TV18's content for distribution through its 4G broadband network, to be rolled out in 2012.
It will indirectly fund part of the acquisition by investing around Rs 1,700 crore in optionally convertible debentures issued by the promoter companies of Network18 and TV18. These funds will be used by the companies to subscribe to rights issues by Network18 and TV18. In turn, TV18 will use these funds to buy RIL's stake in ETV, settle debt and meet working capital needs. The acquisition will enable TV18 to compete with rivals on a regional platform. RIL will gain access to TV18's content for distribution through its 4G broadband network, to be rolled out in 2012.
