Reliance Industries is consolidating all its media and distribution properties under Network 18, TV18 said in a statement to BSE on February 17. As a result, TV18 Broadcast, Hathway Cable and Datacom, and Den Networks will merge into Network18 Media & Investments. The boards of these companies met on February 17 to approve the consolidation and the appointed date for merger is February 1, 2020. Network18 will be net-debt free at consolidated level.
What will happen after consolidation?
- The broadcasting business will be housed in Network18 while the cable and ISP businesses will be 2 separate wholly-owned subsidiaries of Network18.
- Network18 will be an integrated media and distribution company with a revenue of around Rs 8,000 crore.
- For every 100 shares they own, shareholders of TV18 Broadcast will get 92 shares of Network18, Hathway shareholders will get 78 shares and Den shareholders will get 191 shares.
- Reliance Group’s holding in Network18 will reduce from 75% to 64%.