 "Zee Media")
Zee 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, Zee Media would acquire 49 per cent stake by investing Rs 39.7 crore by subscribing equity shares of both companies and had managerial and operational control over the target companies, the company said on Saturday. Explaining its rationale for investing in the ventures, Zee 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.
