Network 18 Group has received the clearance from the Regulatory authority for the Rs 2,053 crore deal to acquire the stake on the ETV network group.
Network 18 has announced the deal to acquire substantial stake in ETV Network for Rs 2,053, the company then filed for the rights issue in September 2012. With the completion of this deal Network 18 will have 100% stake ownership of ETV’s hindi news channels and 50% of its non Telugu GEC channels.
Now Network 18 will have full control of ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan, ETV Bihar, ETV Urdu. 50% stake in ETV Marathi, ETV Kanada, ETV Bangla, ETV Gujrati and ETV Oriya. The Network18 group has board and management control of ETV news channels and ETV non Telugu General Entertainment channels.
Network18 has 24.5% stake in ETV Telugu and ETV Telugu News.
The company also announced that it is holding 50% stake in ETV non-Telugu GEC channels as an asset held for sale since the interest in non-Telugu GEC channels is proposed to be transferred to an associate company.
The acquisition was funded by TV18 and Network18 through a consolidated Rs 5400 crore rights issue, a part of which is being subscribed to Network18 Promoters backed by RIL backed Independent Media Trust.
Around Rs 2,100 crore of the funds being raised by TV18 are being used for this acquisition, while the rest will be used to pay debt and for working capital requirements.