TV18 India to acquire up to 53 per cent stake in Infomedia India

The stake will be purchased in a staggered manner – 40 per cent immediately, followed by an open offer for 20 per cent

TV18 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.”

TV18 India to acquire up to 53 per cent stake in Infomedia India

Haresh Chawla, group CEO, Network18, says, “Infomedia has carved a niche for itself with its exciting array of publishing assets and national footprint. The fresh infusion of funds, combined with the strong management team at Infomedia, will enable the company to significantly leverage Network18’s strengths in the television, Internet and mobile businesses.”

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.”

This is the second leveraged buyout exit by ICICI Venture, the earlier one being Ace Refractories. The development indicates the fund’s ability to buy out companies, scale them up and make successful exits. Renuka Ramnath, managing director and chief executive officer, ICICI Venture, says, “Infomedia is an excellent platform for TV18 to meet its leadership aspirations in the media and publication space. Since the buyout, we have worked hard with the management to build a unique and suitable business model which is both profitable and scalable.”

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.

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