Hinduja Ventures Limited restructures media business
Its subsidiary IndusInd Media and Communications Limited to be integrated into HVL. On the completion of the reorganisation, HVL will transit from a holding company to an operating media company
Hinduja Ventures Ltd. announced the reorganization of its media business. The company said in a release that the Board of Directors of Hinduja Ventures Limited (HVL) ‘approved Scheme of Arrangement between IndusInd Media and Communications Limited (Demerged Company) and Hinduja Ventures Limited (Resulting Company) and their respective shareholders subject to all statutory/ regulatory approvals and approval of the shareholders.’
‘We refer to our letter dated August 12, 2019, wherein it was informed to the Stock Exchanges that the Board of Directors at a meeting held, had in principle accorded approval for reorganisation of media and communications undertaking of of Induslnd Media and Communications Limited, a material subsidiary of Hinduja Ventures Limited into Hinduja Ventures Limited (HVL),' the company said in a letter to the BSE and NSE.
The IndusInd Media and Communications Limited (IMCL) business consists of digital content distribution using multiple platforms such as satellite and fibre. It also carries Broadband and internet business carried out through its subsidiary OneOTT Intertainment Limited (“OIL”).
IMCL also has a dedicated unit that develops content for various platforms and owns a significant content library and movie negatives.
The statement said, ‘HVL believes that this media business has a high growth potential going forward due to a fast maturing industry and recent regulatory reforms like New Tariff Order (NTO). These stimuli provide the right opportunity to consolidate media vertical which will propel it to the next level of growth and performance. The exchange ratio for the proposed restructuring exercise shall be 10 equity shares of HVL fully paid up for each 125 equity shares of IMCL fully paid up.’
Benefits of this consolidation into a single group will achieve flexibility, scale and financial strength. Upon segregation of identified business undertaking, post restructuring the Company shall be able to achieve higher long-term financial returns, increased competitive strength, cost reduction and efficiencies, productivity gains, and logistical advantages, thereby significantly contributing to future growth in their respective business verticals.For more updates, be socially connected with us on
WhatsApp, Instagram, LinkedIn, Twitter, Facebook & Youtube