Mid-Day to merge newspaper business with Jagran Prakashan
05 May 2010
Publishing group Mid-day Multimedia Ltd that publishes the Mid-Day and Inqulab newspapers today announced the merger of its newspaper business with Jagran Prakashan Ltd.
The boards of directors of both Mid-day Multimedia Ltd and Jagran Prakashan Ltd, at their meetings held on 5 May 2010, have approved the proposed scheme of arrangement between Mid Day Multimedia Ltd and Jagran Prakashan Ltd, the companies said in separate filings with the Bombay Stock Exchange.
The merger, once approved, will result in demerger of the print business from Mid-day Multi Media Ltd and transferring it to Jagran Prakashan Ltd with effect from 1 April 2010, it said.
The print business run by Mid-day Multimedia Ltd through its wholly owned subsidiary Mid-Day Infomedia Ltd comprises of publication brands, viz. Mid-Day (published from Mumbai, Pune, Bangalore and Delhi), Sunday Mid-Day, Gujarati Mid-day and The Inquilab, the largest read Urdu newspaper in the country and all publication related internet properties.
The valuation of the two businesses has been done by Ernst and Young Put Ltd and swap ratio as per their report dated 5 May 2010 works out to be 7: 2 (i.e., for each 7 fully paid-up equity shares of Rs10 each of MML, its shareholders will be entitled to 2 fully paid-up equity share of Rs2 each of JPL).
The radio business of Mid-Day Multimedia Ltd, operated through its subsidiary Radio Mid-Day, will continue to stay with the present shareholders of Mid-Day Multimedia Ltd.
"The merger envisages the demurer of the investment arm of MML, holding investments in Mid-Day Info media Ltd, comprising of the print business and transferring it to Jargon Pakistan under the provisions of sections 391 to 394 of the Companies Act, 1956," Mid-day Multimedia said in a regulatory filing with the Bombay Stock Exchange (BSE).
The scheme is subject to the consent of the requisite majority, as the case may be of the shareholders and / or creditors of MML and the transferee company, as may be directed, and subject to sanction of the scheme by the high courts at Mumbai and Allahabad, the release added.