afaqs!

Jagran Prakashan buys out Mid-Day

By Sumantha Rathore , afaqs!, New Delhi | In Media | May 05, 2010
Jagran Prakashan has taken over the newspaper business of Mid-Day Multimedia for a 7:2 swap ratio as per which MML shareholder will receive two shares of JPL for every seven shares held as of today

Putting all speculations to rest, Jagran Prakashan has finally taken over Mid-Day newspaper. Mid-Day is estimated to be worth Rs 175 crore based on the current market price.

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Mid-day Multimedia and Jagran Prakashan have informed BSE that in the board meeting the company has approved the proposed scheme of arrangement between Mid Day Multimedia (MML) and Jagran Prakashan Limited (JPL). There is no cash component in the deal signed between the two media companies.

Mid-Day has approved the de-merger of the investment arm of MML, holding investments in Mid-Day Infomedia Ltd , comprising of Mid-Day tabloid. As per the deal, for Mid-day newspaper, MML shareholder will receive two shares of JPL for every seven shares held as of today.

However, there will be no change in the top management as Tariq Ansari, MD, Mid-Day Multimedia and Manajit Ghoshal, CEO, Mid-Day Infomedia will continue to run the company.

Mid-Day Multimedia will continue to carry on with with the radio business (Radio One) through its subsidiary Radio Mid-Day West India.

It has to be noted that, the talks of Jagran taking over the tabloid surfaced a month back, when BlackStone announced the decision to invest 225 crore in the former.