TV18 & E18 to merge with Network18
With an extensive presence across languages in both TV and Digital domains, the merger is poised to empower Network18 to consolidate and expand its business from a robust position, a statement from Network18 said
Network18 Media & Investments Ltd (Network18) and TV18 Broadcast Limited (TV18) announced on December 6 a scheme of arrangement in which TV18 and e-Eighteen.com Limited (E18), will merge with Network18.
The proposed scheme aims to consolidate the TV and digital news segments of the Network18 group into a unified company, establishing India’s largest platform-agnostic news media entity. With an extensive presence across languages in both TV and digital domains, the merger is poised to empower Network18 to consolidate and expand its business from a robust position. Shareholders will have a unique opportunity to engage in the group’s media business through one listed entity, Network18’s statement said.
The merged entity will comprise the TV portfolio of TV18 (20 news channels in 16 languages and CNBCTV18.com), digital assets of Network18 (News18.com platform across 13 languages and Firstpost) and also the moneycontrol website and app. Viacom18 with its portfolio of JioCinema and 40 TV channels will be a direct subsidiary of Network18. Network18 will continue to hold its investment in BookMyShow.
As consumers and advertisers increasingly gravitate towards omnichannel experiences across different aspects of their lives, having a deep and integrated presence across both TV and Digital media will enable the merged entity to serve them better. Further, as the Network18 group has been working towards convergence, an integrated entity for news gathering and dissemination is expected to result in cost and content synergies.
In the scheme of arrangement by Network18 Media & Investments Ltd., TV18 Broadcast Limited, and e-Eighteen.com Limited, the appointed date for the merger is set as April 1, 2023. The share exchange ratio outlined in the scheme stipulates that for every 172 shares of TV18, shareholders will receive 100 shares of Network18. Similarly, for every share of e-Eighteen.com Limited (E18), shareholders will be entitled to 19 shares of Network18. These parameters are crucial aspects of the consolidation strategy, providing a structured framework for the merger.
PwC Business Consulting Services LLP (PWC BCS) and Ernst & Young Merchant Banking Services LLP (EY) have jointly produced a valuation report determining the fair share exchange ratio for the merger.
Network18 appointed PWC BCS, while TV18 and E18 engaged EY for this valuation exercise. In addition, BofA Securities India Limited, Citigroup Global Markets India Private Limited, and HSBC Securities and Capital Markets India Private Limited offered Fairness Opinions as financial advisors for Network18, TV18, and E18, respectively. Khaitan & Co. serves as the legal advisor for the scheme. The successful execution of the scheme of arrangement is contingent upon obtaining all necessary approvals.
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