Network18 to sell London-listed TIFC to Roptonal
04 Oct 2010
Noida-based Network18 Media & Investments, India's largest news network will divest its 80 per cent stake in London-listed The Indian Film Company (TIFC) to Roptonal Limited, a subsidiary of Viacom 18 Media Private Ltd, a 50:50 joint venture between Netwrok18's unit IBN18 and Viacom Group.
In a filing to the Bombay Stock Exchange, Network18 Media said that the board of directors of Roptonal, Cyprus, a subsidiary of Viacom 18 Media Private Ltd, has made an offer for the issued share capital of TIFC.
Under the terms of the deal, the shareholders of TIFC will receive 115.56 pence each in cash per TIFC Share, representing s a premium of 208 per cent to the closing mid-market price of 37.5 pence on 2 July 2010.
The offer values the entire issued and to be issued share capital of TIFC at approximately for Rs445 crore (£63.5 million).
Roptonal said that it is interested in 46,709,742 shares of TIFC representing 84.93 per cent of the issued share capital and it has received irrevocable undertakings from Network 18 to accept the offer in respect of a total of 49,526,180 shares of TIFC representing approximately 90.05 per cent of TIFC existing issued share capital.
The sell-off is in line with Network18 strategy of consolidation of its entertainment businesses with Viacom18's and also in line with the company's planned expansion in the entertainment space and acquisition of synergistic content.
