India will acquire up to 53 per cent stake in Infomedia India, a publication company, from an ICICI Venture managed fund. The stake will be purchased in a staggered manner; 40 per cent has been bought immediately for a total purchase consideration of Rs 178 crore. This will be followed by an open offer for another 20 per cent. If the open offer does not garner enough response, TV18 will have the right to buy such number of shares from the ICICI Venture managed fund to enhance its stake to at least 53 per cent.
The acquisition will enable TV18 to enter the growing publications business and benefit from the cross-media leverage of its existing brands. Raghav Bahl, managing director, Network18, says, "The acquisition has come at an opportune time and will significantly accelerate our publishing growth plans. It signifies our commitment of being an integrated player in the media and publishing space."
Commenting on the development, Prakash Iyer, managing director, Infomedia India, says, "Infomedia is already a leading publishing player in the market and this acquisition will enhance the marketing of our value added offerings. The development is extremely relevant in a rapidly changing Indian media market. We look forward to building a bigger and better organisation for the future."
Infomedia India has further agreed to issue 50 lakh warrants to TV18 and 10 lakh warrants to the ICICI Venture managed fund. The issue is as per SEBI (Securities and Exchange Board of India) pricing norms and the fund infusion will be used to propel further growth in Infomedia.