RIL to make open offer to Network18 on 21st July 2014

Following the announcement of open offer of acquiring Network18 group’s public shareholding last week, Reliance has announced its open offer to acquire a controlling stake in media group Network18 and its subsidiaries beginning on 21st July 2014.  RIL proposes to acquire control over the media group through Independent Media Trust (IMT). The open offers will close on 4th August 2014.

A statement issued by the company said, "IMT would use the funds to acquire control over NW18 and TV18 resulting in ownership of about 78% in NW18 and 9 per cent in TV18 and to acquire shares tendered in the open offers”.

An open offer is being made for the acquisition of up to 22,99,46,996 equity shares of Network18 Media & Investments, amounting to a 21.96% stake, for Rs 943.70 crore. RIL is also seeking to acquire up to 44,65,10,110 equity shares, or 26%, of TV18 Broadcast for Rs 1,347.57 crore. A third open offer will be made for up to 1,30,62,224 equity shares of Infomedia Press Ltd. This constitutes a 26% stake purchase for Rs 3.92 crore. The open offers are being made by JM Financial Institutional Securities Ltd on behalf of IMT, RIL and Reliance Industrial Investments and Holdings.

RIL has also announced the schedule for the entire offer that will run between June and August 2014.

The schedule reads –

12th June 2014 - Filing the Network18, TV18 and Infomedia draft letters with the Securities and Exchange Board of India (SEBI)

26th June 2014 – Fixed as the last date for competitive offer.

3rd July 2014 – SEBI, unless requires additional information, will give in its observations on the letters

14th July 2014 – Public share-holders receive the letters of offer.

15th July 2014 – Revision of letters of offer.

17th July 2014 – Recommendations to be given by the committee comprising of independent directors of the three companies to shareholders of target company.

18th July 2014 - Offer of opening public announcement will be published in newspapers.

21st July to 4th August 2014 - Tendering period opens.

20th August 2014 - Last date for communicating the rejection/acceptance and completion of payment of consideration or refund of equity shares to the shareholders of the company.

27th August 2014 - Last date for publication of post-offer public announcement in the newspapers.

Dated 27th February 2012, Network18 and its subsidiary TV18 and Reliance Jio Infocomm had signed a content licence agreement. Reliance Jio Infocomm is RIL’s subsidiary for content transmission through its 4G broadband network and shall have preferential access to its content on a first right basis.

The NW18 Group has interests in television, Internet, films, e-commerce, magazines, mobile content and allied businesses. Its properties include moneycontrol.com, Firstpost.com, Homeshop18.com and Bookmyshow.com, while Colors, CNN-IBN, CNBC TV18, IBN7 and CNBC Awaaz are among its broadcast channels.