Jagran Media Network Investment Private Limited, the holding company of publisher Jagran Prakashan, has decided to increase its stake in the listed company by 2.63% it said in a notification on the Bombay Stock Exchange. Jagran Media Network Investment Private Limited will be buying 8.6 million shares from Suvi Info Management, a wholly owned subsidiary of Jagran Prakashan, and the funds will be used to reduce the company’s existing debt.
Jagran Prakashan said that Suvi Info Management had acquired through the demerger of the print business of Naidunia Media Ltd into JPL. The sale is expected to to happen on June 23 and will translate into an investment of approximately Rs 100 crore with the current share price of the company at Rs 117.15 at Friday’s close.
The price will not exceed or go below 1 per cent difference to the closing price of the stock a day ahead of the transaction. Moreover, it will be based on the price within 25 per cent of the average weighted price of the company two months before the disclosure.
Jagran Prakashan also revealed that private equity player Blackstone holds a minority stake of 12.82% in the holding company.
Acquisition of Radio City 91.1 FM: Earlier in May, the company got the ministry of information and broadcasting’s approval for the acquisition of radio network Radio City. Jagran Prakashan’s board approved to acquire Music Broadcast Private Limited (MBPL), which operates Radio City 91.1 FM in December 2014.Radio City currently operates radio stations in 20 cities across 7 states in India, including Mumbai, Delhi, Bangalore & Lucknow. It also has tie-ups with other radio stations like Suno Lemon in Gwalior & Friends FM in Kolkata. Radio City also runs the music portal PlanetRadiocity.com that offers music related news, songs, videos, etc. PlanetRadiocity had also launched an online store to sell music related merchandize, movie CDs/DVDs and special memorabilia & collectibles among others, in August last year.
Financials: For the quarter ended March 31, Jagran Prakashan reported a Net Profit of Rs 129.79 crores. Operating Revenues stood at Rs 422.74 crores, up by 0.5% from Rs 420.75 crores from the same period last year. Advertisement Revenues were at Rs 292.90 crores, up by 0.4% from Rs 291.66 crores from last year.