This will lead to suggestions of consolidation in the media space, after Zee’s acquisition of 9X: Jagran Prakashan‘s board has approved the acquisition of Mid Day Multimedia‘s print business, which includes publication brands Mid-Day (published from Mumbai, Pune, Bangalore and Delhi), Sunday Mid-Day, Gujarati Mid-day and The Inquilab. The print business is run by Mid Day’s wholly owned subsidiary Mid-Day Infomedia Ltd (MIL), as well as their website mid-day.com
The share swap ratio of the deal has been determined to be 7:2. Mid Day shareholders will get 2 shares of face value Rs. 2, for every Jagran Prakashan share of face value Rs. 10. Subsequent to this announcement, Rakesh Jhunjhunwala has resigned from Mid Day’s Board of Directors.
The Ansari family will continue to hold investment in the publishing business post completion of the demerger (from Mid Day Multimedia). Mid Day MD Tarique Ansari has said that scale and resources will be critical factors in the coming years, and the company believes that the sale to Jagran will allow the publishing business to face competition better in the publishing and Internet space. Of course, keep in mind that Jagran has given its mandate for their online content to Yahoo India. Ansari and Mid Day CEO Manajit Ghoshal will continue to run the publication business.
So with its iconic Mumbai tabloid business sold, what will Mid Day be left with? Its radio business – Radio One, run via its subsidiary Radio Mid-Day. The company will continue to be listed on the BSE and NSE.
P.s. Added to our Deals Listing
— Jagran To Receive $50M Investment From Blackstone; Confirms MidDay Talks
–Earnings Digest: Jagran Prakashan, Shyam Telecom & BAG Films
–Should Jagran Prakashan Have Given iNext Digitization Mandate To Google?