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| Independent sells 7.5% in Jagran for Rs 255 crore |
| BS Reporter / Mumbai Mar 10, 2010, 00:45 IST |
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UK-based media house Independent News & Media (INM) sold 7.5 per cent or over half of its remaining holding in publishing group Jagran Prakashan for Rs 255 crore to a bunch of domestic and foreign funds.
Block deal data on exchanges show INM sold the shares at Rs 111 a share, a discount of 9.3 per cent to Jagran’s closing price of Rs 122.40 a share on the Bombay Stock Exchange on Monday. The deal happened yesterday.
INM, which is getting out of its non-core assets, made the investments four years earlier. The returns were 124 per cent.The company, which owns the loss-making British daily, The Independent, sold 7.3 per cent in Jagran last year. It now holds 5.7 per cent.
“INM has been facing financial problems in the US and it would use the proceeds to pay its bank debts,” said Anand Shah, media analyst, Angel Broking.
| FINE PRINT |
| Print name |
Price per share (in Rs) |
Mcap (in Rs cr) |
| D B Corp |
235.20 |
4269.12 |
| Deccan Chronicle |
161.94 |
3922.19 |
| Jagran Prakashan |
117.75 |
3546.04 |
| HT Media |
143.85 |
3380.48 |
| Sandesh Ltd |
213.50 |
184.68 |
| Mid-Day Multimedia |
22.90 |
121.00 |
| Cyber Media |
33.50 |
33.50 |
A media analyst said the average cost of acquisition for INM worked out to Rs 24 a share in Jagran, which means it is sitting on unrealised gains of five times on its remaining holdings.
The latest stake dilution came even as INM was quoted as recently as July 2009 that “it was happy to confirm that it intends to remain a long-term investor in JPL and will not be disposing of any further shares”.
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