TV Today okays execution of investment agreement with TMPL, LMIL, Zee
The Board of Directors of TV Today Network in its meeting held on April 8, 2016, inter alia has approved the execution of investment agreement and letter agreement with Today Merchandise Pvt Ltd (TMPL), Living Media India Ltd (LMIL), and Zee Media Corporation Ltd (ZMCL). The Board also approved a promoter promotion agreement with TMPL, whereby TV Today Network would be providing advertising and promotional services to TMPL of Rs 2.5 crore per annum for a period of five years.
In consideration of providing the promoter promotion advertisement support, TV Today Network shall be issued compulsory convertible debentures (CCDs) of TMPL worth Rs 12.5 crore. Such CCDs can be converted into equity shares after the expiry of five years from the date Zee has invested in TMPL.
As per the arrangement, TV Today Network is required to provide promoter promotion support to TMPL by way of advertising, which is to be provided within a period of five years from the date Zee invests in TMPL, and the support in each year (within the five years period) is limited to Rs 2.5 crore. Living Media will provide advertisement support of Rs 37.5 crore over five years to TMPL and Zee will invest Rs 153.53 crore over a period of four years through equity shares and CCDs.
Zee shall initially, by June 2016, acquire 49 per cent equity stake by investing approximately Rs 36.87 crore by subscribing to equity shares of TMPL, at par
Subsequently, Zee shall increase its stake, by investing up to Rs 116.6 crore over a period of four years, by subscribing to any security convertible into equity shares of TMPL, at par value in such a manner that upon conversion, the shareholding of Zee shall be 80 per cent of fully diluted capital of TMPL.