You are here: Home » Companies » News
Business Standard

Zee Media to acquire 80% stake in India Today companies

By June, Zee Media will acquire 49% stake and have managerial and operational control over the target companies

Topics
Zee

Press Trust of India  |  New Delhi 

Zee Media
Zee Media

Media Corporation will acquire up to 80 per cent stake in India Today group’s loss-making e-commerce and TV shopping entities — Today Merchandise and Today Retail Network Pvt Ltd — for Rs 166 crore in staggered payments over the next four years.

The investment will be made in tranches. By June, Media would acquire 49 per cent stake by investing Rs 39.7 crore by subscribing equity shares of both and had managerial and operational control over the target companies, the company said on Saturday. Explaining its rationale for investing in the ventures, Media said TV shopping holds great investment value and with this acquisition, the company would shorten the launch timing of TV shopping channel.

"The board of directors of the company has approved in-principle, acquisition of 80 per cent equity stake by the company in both Today Merchandise Pvt Ltd (TMPL) and Today Retail Network Pvt Ltd (TRNL)," Zee Media Corporation said on Saturday.

“The target companies, which are currently in losses, have been developing infrastructure for launching a TV shopping channel and also operating an e-commerce website — www.bagittoday.com — to complement the TV shopping business."

Subsequently, the company shall increase its stake by investing up to Rs 126 crore over four years, subscribing to any security convertible into equity shares of both companies, as par value, that upon conversion, the shareholding of the company shall be 80 per cent of fully-diluted capital of TMPL and TRNL.

"The company with its existing broadcast operations will also be able to derive synergy benefits from this proposed investment," it added.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 27 2016. 22:29 IST
RECOMMENDED FOR YOU
.