Network18 Group has received regulatory approvals and completed the Rs 2,053-crore deal to acquire stakes in different channels of ETV, which was announced in 2012. The company had then filed for rights issue in September 2012. With this deal Network18 has 100% ownership of ETV’s hindi news channels and 50% ownership of its non-Telugu GEC channels.
This means Network18 now fully control ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan, ETV Bihar, ETV Urdu. It has 50% stake in ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya. It also has 24,50% interest in ETV Telugu and ETV Telugu News. Network18 will have board and management control of ETV news channels and ETV non-Telugu GEC channels.
The company also announced that it is holding 50% stake in ETV non-Telugu GEC channels as an asset held for sale since the interest in non-Telugu GEC channels is proposed to be transferred to an associate company.
TV18 and Network18 are funding the acquisition through a consolidated Rs 5400 crore rights issue, a part of which is being subscribed to Network18 Promoters backed by RIL backed Independent Media Trust. Around Rs 2,100 crore of the funds being raised by TV18 are being used for this acquisition, while the rest will be used to pay debt and for working capital requirements.
In September 2012, Network18 had filed for a rights issue of Rs 2699.62 crore, offering 89,98,73,930 shares, in the ratio 307:50, being offered at Rs 30 per share to existing shareholders. TV18 Broadcast had also filed for a rights issue of Rs 2699.16 crore, offering 134,95,77,882 shares, in the ratio 41:11, being offered at Rs 20 per share to existing shareholders.