Following the restructuring of TV 18 and formation of Network 18, Raghav Bahl, the promoter of Television Eighteen India Ltd, has informed that he would voluntarily relinquish over 10 per cent stake in Network 18 in favour of a Trust for the benefit of TV18.
The Trust will hold a 10.56 per cent (5,269,533 shares) stake in Network 18. This will bring down Bahl’s shareholding in Network 18 to 51 per cent.
The Trust will sell these shares after Network 18 is listed, leading to an efficient price discovery. The cash so raised will then be made available to TV18. Accordingly, plans for an IPO at the Network 18 level had been dropped, the company said in a statement.
The company has further decided that Network 18 will divest 2.07 per cent of its shareholding in TV18 in the open market. This will bring Network 18’s holding in TV18 down to 51 per cent. The cash raised by this sale shall also be made available to TV18, the company said.
The company had on December 22 declared the restructuring of the company and the creation of a new company, Network 18. The stock of the company is also split in the ratio of 1:2. The new entity will include the newly launched English news channel, ‘CNN IBN’.