HT Media Ltd has informed BSE that the Board of Directors of the Company at its meeting held on November 28, 2008, inter alia, has approved a proposal for the demerger of the radio business of HT Music and Entertainment Company Ltd, a subsidiary company of HT Media.
Confirming the news, Dinesh Mittal, VP - Legal, Tax and Company Secretary, HT Media Ltd, explained, “Today, at Board meeting it was decided that now the radio division Fever will come under HT Media. Earlier, this radio division use to come under HT Music and Events. The reasons are that when we sell ad inventory, many clients want both print and radio. Now, the ad sales will be in synergy with one inventory.”
Mittal further said, “Another reason for the demerger is that there were tax losses in the radio entity, which will give a tax break in HT Media.”
A petition has been filed on November 28 before the Delhi High Court and it will take 4-6 months for the process to get completed. The move is subject to necessary approval(s)/ sanction of the concerned authorities and the Delhi High Court.