The TV18 Group has announced that it has acquired 100 per cent stake in regional broadcaster ETV Group. The announcement stated that the Group has “successfully completed the acquisition of (i) 100 per cent interest in regional news channels in Hindi, namely ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan, ETV Bihar, ETV Urdu Channel (ETV News Channel); (ii) 50 per cent interest in ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya (ETV non-Telugu GEC channels); and (iii) 24.50 per cent in ETV Telugu and ETV Telugu News (ETV Telugu News)”.
TV18 will have board and management control over of ETV News channels and ETV non-Telugu GEC channels. The interest has been transferred to TV18 with effect from January 22, 2014.
In order to close the transaction, TV18 has paid a sum of Rs 2,053 crore in accordance with the share purchase agreement and which is within the board approved outlay of up to Rs 2,100 crore for this acquisition, as mentioned in the board meeting on January 3, 2014.
It may be recalled that at a board meeting held on January 3, Network18 Media & Investments (Network18) had approved a rights issue of equity shares to raise an amount up to Rs 2,700 crore at a price to be determined by the Board in compliance with regulatory requirements, but not exceeding Rs 60 per equity share.
At the same board meeting, TV18 Broadcast also approved a rights issue of equity shares to raise an amount up to Rs 2,700 crore at a price to be determined by the Board in compliance with regulatory requirements, but not exceeding Rs 40 per equity share.