Network 18 Holdings gets ‘valid acceptance’ to up stake in TIFC to 80.4 per cent

Network 18 Holdings has received 'valid acceptance' of the offer for 44.4 per cent shares of the The Indian Film Company, which will increase shareholding of the Network 18 group to 80.4 per cent, Network 18 Media & Investments said in a filing with the Bombay Stock Exchange.

Earlier, Network 18 Holdings had acquired a 14.39 per cent shareholding in the company according to the filing. Network 18 Holdings is a subsidiary of the Raghav Bahl-promoted Network18 Media & Investments.

Network 18 has also agreed to acquire a controlling stake of 50 per cent in Film Invesment Managers (Mauritius), the Asset Management Company (AMC) of TIFC it said.

Meanwhile, the Foreign Investment Promotion Board (FIPB) has also approved the company' bid to induct Rs119 crore and to hike its foreign institutional investment (FII) limit from 13 per cent to 49 per cent. Also, TV 18 has announced a rights issue at the rate of one share for every two shares held pricing the issue at Rs84 per share.

Commenting of the developments, Behl said the company could now have 49 per cent foreign ownership. He added that with the development Network 18 now has an opportunity to gravitate in parts to an environment in which it is fully valued.

He added that Network 18 could now emerge as a world player now rather than just an Indian player.

Bahl said the company had no plans for further fund raising plans and that further funds needed to be raised for TV18. He added that TV18's net debt would reduce to Rs200-300 crore he added.