Gaurav Mercantile promoted by Raghav Bahl to acquire The Quint
Gaurav Mercantile promoted by Raghav Bahal and Ritu Kapur have announced the acquisition of the digital content business The Quint. The lump-sum purchase consideration is at an enterprise value of Rs 30.58 crore.
In a notification sent to BSE, Gaurav Mercantile said this is a related party and the acquisition will be as a going concern on a slump sale basis for a lump-sum consideration. The acquisition is subject getting the necessary approvals of the shareholders.
As per the exchange filing, Raghav Bahl and Ritu Kapur are common directors in Gaurav Mercantile and Quintillion Media Private Limited.
In addition, Raghav Bahl and Ritu Kapur, the promoters of Gaurav Mercantiles Limited collectively owning 66.42 percent of the share capital, are the ultimate beneficial shareholders of Quintillion Media Private Limited.
Keeping the corporate governance in mind , it is also disclosed that Mohan Lal Jain, promoter of Gaurav Mercantile Limited, is a director on the Board of the holding company of Quintillion Media Private Limited, the filing said.
The transaction is being entered at arm length based on a fair valuation report of an independent valuer, supported by a fairness opinion from a Category — 1 Merchant Banker registered with the Securities and Exchange Board of India.
The lump-sum purchase consideration will be at an enterprise valuation of Rs 30.58 crore and an equity value of Rs 12.62 crore, adjusted in accordance with the terms of the draft Business Transfer Agreement (including closing adjustments), based on the fair valuation report of an independent valuer.
The Board of Directors approved the proposal to increase the borrowing powers of the company and for creation of charge or mortgage or hypothecation against the assets or properties of the company up to Rs 100 crore in accordance with the provisions of Section 180 of the Companies Act, 2013, subject to the approval of the shareholders.
The Board of Directors approved the shifting of the Registered Office of the company from the State of Maharashtra to the National Capital Territory of Delhi and consequent amendment to Memorandum of Association of the company, subject to the approval of the shareholders.
Quintillion Media Private Limited is a private limited company engaged in the business of owning and operating diversified digital content platforms. Quintillion Media Private Limited presently operates digital content platforms under the following names viz. "The Quint", "The Quint Hindi" and "FIT".
The digital business had revenues of Rs 11.1 crore as per latest audited financial statements as at March 31, 2019.