Homeshop18 & Shop CJ aggregate their biz under HomeShop18 umbrella
Leading home-shopping players – TV18 Home Shopping Network Ltd (HomeShop18) and Shop CJ Network Pvt Ltd (Shop CJ) – have combined their businesses, thereby completing the transaction proposed in September 2017. This combination makes HomeShop18 the largest TV home-shopping network in India.
The resultant benefits of scale shall better the growth prospects for the combined entity, allowing it to improve its standing in the TV home-shopping landscape and compete better with the challenge from e-commerce players. HomeShop18 has optimised its operations substantially since the challenges faced in the last year. The company believes multiple synergies with respect to sourcing, marketing and delivery can be exploited through a combination with Shop CJ, which shall further accelerate this process.
Pursuant to this transaction, Shop CJ shareholders hold 25 per cent in the combined entity. HomeShop18 ceases to be a subsidiary of Network18 Media & Investments Ltd; however, Network18 shall continue to be the largest shareholder in the combined entity.
HomeShop18 is India’s first comprehensive digital commerce player, selling credible brands to customers nationally through not just TV, but also Internet and mobile. Before this transaction, HomeShop18 was a subsidiary of Network18 Media & Investments, with SAIF Partners, GS Home Shopping South Korea and OCP as co-investors.
Prior to this transaction, Shop CJ Network (formerly known as Star CJ Network India) was a 50:50 joint venture between the South Korean home shopping major, CJO Shopping Co Ltd and the P5 Asia Holding Investments (Mauritius) Ltd belonging to the Providence Equity Partners Group.
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