TV18 promoter to relinquish over 10% in favour of shareholders
30 Dec 2005
Raghav Bahl, promoter of Television Eighteen India Limited, has announced his intention to voluntarily relinquish over 10-per cent stake in Network 18 in favour of a trust for the benefit of TV18. The trust will hold 10.56-per cent stake (5,269,533 sh ares) in Network 18 (the new holding company). This will bring down Bahl's shareholding to 51 per cent in Network 18 . The trust will, subject to receipt of all regulatory approvals, make a sale of these shares after Network 18 is listed. The cash raised is intended to be made available to TV18.
Accordingly, Network 18 has dropped its plans for an IPO at the level have been dropped.
The company has further decided that Network 18 will divest 2.07 per cent of its shareholding in TV18 in the open market. This will bring Network 18's holding in TV18 down to 51 per cent. The cash raised by this sale will also be made available to TV18.
The
revised shareholding in TV 18, will now be: Network 18,
51.00 per cent; shares to be sold to raise cash for TV18's
shareholders, 2.07 per cent; accelerated ESOP, 2.63 per
cent; non-Raghav Bahl transfer shares (public and others),
44.30 per cent.
Bahl's
shareholding in Network 18 will be 51.00 per cent; non-Raghav
Bahl transfer shares (public/ others) - Direct 38.44 per
cent; trust (to be monetised for TV18) 10.56 per cent.
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