BackRIL to sell 3.1% stake in Network18 to meet Sebi norms
The sale is expected to fetch around `203.45 crore based on the price of the shares of NW18 on Monday
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Mumbai: Reliance Industries Ltd (RIL) will sell 3.1% stake, or 32.5 million shares, in Network18 Media & Investments Ltd (NW18) to meet the listing guidelines laid down by the Securities and Exchange Board of India (Sebi).
In a note to stock exchanges on Monday, RIL said the shares are being sold “to bring down the aggregate shareholding of the promoter and promoter group to 75% and increase the public shareholding to 25% as mandated by Clause 40A of the listing agreement pursuant to Securities Contract (Regulation) Rules, 1957."
The sale will be done through a wholly owned subsidiary of RIL—Shinano Retail Pvt. Ltd which is a promoter group company of NW18.
The sale is expected to fetch around ₹ 203.45 crore based on the price of the shares of NW18 on Monday. Shares of NW18 rose 2.6% to ₹ 62.60 on Monday,
On 29 May 2014, RIL approved an investments of ₹ 4,000 crore into Independent Media Trust, a company-promoted investment trust, to acquire 78% in NW18 and 9% in its subsidiary TV18. The deal was closed in July 2014.
NW18 has a bouquet of 17 news channels and 14 entertainment channels.
The acquisition was to partly help Reliance Jio Infocomm Ltd’s (R-Jio) service offerings. R-Jio is the telecom arm of RIL and is expected to launch its services in December.
Mukesh Ambani, chairman of RIL, during the company’s annual shareholder meeting in June, had said that the entire television and Internet content of NW18 will be offered through the company’s Jio platform once it is officially launched. RIL shares rose 0.85% to ₹ 1,015.30.
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