Top Story

e4m_logo.png

Home >> Media - TV >> Article

NDTV Board approves demerger of news business

04-October-2008
Font Size   16
NDTV Board approves demerger of news business

The Board of Directors of New Delhi Television Ltd has approved the draft scheme of the demerger of the news businesses of NDTV Ltd into a new company. The appointed date for the scheme would be April 1, 2009. The decision was taken at a meeting of the NDTV Board held on October 1.

The NDTV Group will thereby be split into two groups of companies – one group of companies will carry out ‘news and other businesses’, while the other group of companies will carry out ‘entertainment and specified allied businesses’.

The aim of the demerger is to unlock shareholder value as well as provide increased choice and flexibility to shareholders. Moreover, the news business and the entertainment business operate under very different regulatory environments.

Following the demerger, NDTV Ltd will continue to remain listed on the Bombay Stock Exchange and the National Stock Exchange and will engage in non-news businesses. Subject to necessary approvals, the new company would also get listed under Clause 8.3.5.1 of the SEBI (Disclosure & Investor Protection) Guidelines, 2000. This new company would engage in news and allied businesses.

After the demerger, for every one share currently held in NDTV Ltd, a shareholder will receive one share in the new company – for every share of face value of Rs 4 currently held in NDTV Ltd, a shareholder will receive a share of face value Rs 4 in the company that will acquire the news businesses of NDTV Ltd as part of the demerger. At the same time, the shareholder will continue to hold his current Rs 4 share in NDTV Ltd.

Suitable arrangements will be put into the terms of the scheme for the ownership and use of the NDTV brand. Arrangements for the ownership and use of common assets will also form part of the Scheme.

As part of the Scheme, certain undertakings and guarantees provided by NDTV Ltd will be undertaken by both the companies after the de-merger. The Scheme shall be subject to the approval of the Delhi High Court and subject to all other requisite approvals.

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

Launches third phase of TVC campaign ‘Think it. Done’

Based in Mumbai, Usha has nearly two decades of experience in the Indian media and entertainment sector and will serve as a strategic advisor to H+K’s diverse portfolio of clients with a special empha...

Report based on media channel data in 96 countries and detailed findings from the world‘s key ad markets, which between them account for approximately two-thirds of the value of global advertising tra...