Network18 announces two listed entity structure for the group

The Board of Network18 group has approved a re-organization plan to create a simplified two listed entity structure for the group. The New TV18 entity consolidates all TV businesses of the group and owns CNBC-TV18, CNN-IBN, IBN7, CNBC-Awaaz and the group's 50% stake in Colors, MTV, Nick, VH1 and IBN Lokmat.

The New Network18 will hold a controlling interest in New TV18 and will be the operating company for the group's digital, publishing, sports and event management businesses.

New Network18 will also hold all group investments in HomeShop18, Newswire18, DEN, Yatra and Capital18. The new structure will offer shareholders the choice of investing in either the entire Network18 Group or only in the broadcast TV business. It will also create opportunities for harnessing greater operational synergies.

Raghav Bahl, founder and Managing Director of Network18 said, "Over the last decade, Network18 has grown into a formidable media group from its humble beginnings in business news. The vagaries of regulation and individual business needs have resulted in a somewhat complicated structure with cross holdings. I am delighted to announce today that we are now reorganizing businesses

The business exchange ratios are based on an independent valuation done by Grant Thornton. The exchange ratios have resulted in an arrangement which transfers businesses on a market cap neutral basis. Shareholders of TV18 will receive shares of IBN18 (eventually, New TV18) in consideration for the transfer of business news channels and shares of Network18 in consideration for the transfer of the residual business. Shareholders of Infomedia18 will retain their existing shares and will receive additional shares of Network18 as consideration for the transfer of the Yellow Pages and Publishing businesses.