Network18 board approves deal to acquire RIL stake in ETV
03 Jan 2012
Marking its foray into the media industry, Reliance Industries Ltd (RIL) announced its plans to invest in Network18 group's two firms through a rights issues and will sell a part of its stake in regional broadcaster ETV to TV18 Broadcast Ltd.
RIL did not specify the exact financial details of the transactions.
TV18, a Network18 firm, said in a separate statement that its board has approved an outlay of up to Rs 2,100 crore for the proposed acquisition of ETV assets. Reliance will fund a rights issue by TV18 Broadcast's founders and, in turn, gain exclusive access to content for its 4G wireless broadband services.
RIL is launching 4G broadband services through its unit Infotel Broad Band Services Ltd.
In all, Network18 and TV18 would raise about Rs4,000 crore including Rs1,700-crore contribution from the promoters.
RIL said its group companies, through investments of about Rs2,600 crore, has stake in Eenadu group's various channels. The company would selling ''a part of
the interest owned by it in the ETV Channels'' to TV18 Broadcast Ltd.