Reliance takes full control of Network18

The board of Reliance Industries Ltd today approved open offers to acquire full control of Network18 Media and Investments Ltd and its subsidiary TV18 Broadcast Ltd. The board approved funding of Rs 4,000 crore to Independent Media Trust Ltd (IMT), of which Reliance is the sole beneficiary, to complete this acquisition. Network18 is owner of several news and entertainment channels, including CNN-IBN, CNBC TV18, Colors, and several digital publications, including Moneycontrol.com and Firstpost.com. [caption id=“attachment_1549049” align=“alignleft” width=“380”]  Network18 logo.[/caption] In a note to the stock exchanges, Reliance has said that IMT will use the funds to acquire control of Network18 and TV18, resulting in ownership of around 78 percent in the former and 9 percent in the latter based on the shares tendered for sale by public shareholders. Sebi takeover rules call for open offers to be made to public shareholders whenever a company, or companies acting in concert, seek to acquire control of another listed company once shareholding crosses 25 percent. The open offers will be made to shareholders of Network18, TV18 and Infomedia Press Ltd. The Reliance note says that “this acquisition will differentiate Reliance’s 4G business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties. This suite includes in.com, ibnlive.com, moneycontrol.com, firstpost.com , cricketnext.com, Homeshop18.com, bookmyshow.com; the broadcast channels include Colors, CNN-IBN, CNBC TV18, IBN7, CnBC Awaaz.” Full disclosure: Firstpost.com is part of the Network 18 group