TV18 to take 53% stake in Infomedia India
TV18 today announced that it would acquire 53 per cent stake in the publication company Infomedia India Ltd from an ICICI Venture managed fund, subject to regulatory clearances.
The stake will be purchased in a staggered manner – 40 per cent immediately, followed by an open offer for 20 per cent of Infomedia
In the event that the open offer does not garner enough response, then TV18 has the right to purchase such number of shares from the ICICI Venture managed fund so as to augment its stake up to at least 53 per cent, said a press release.
TV18 has acquired the 40 percent stake for a total purchase consideration of Rs 178 crore. This acquisition would enable TV18 to enter the publication businesses. TV18 will also benefit from the cross media leverage of its existing brands.
The release from ICICI ventures does not indicate the price paid per share. But based on the quantum of shares outstanding as on September 30, 2007 and the fact that TV 18 is acquiring 40 per cent of the total outstanding stock the price paid per share should be in the region of Rs 360. Infomedia shares closed at Rs 258.1, up 6.56 per cent from the previous close of Rs 242.2 per cent, on the BSE.
Infomedia India Ltd has further agreed to issue 50 lakh warrants to TV 18 and 10 lakh warrants to the ICICI Venture managed fund. This issue is as per SEBI pricing norms and this fresh infusion of funds will be used to propel further growth in Infomedia. Infomedia is one of the first leveraged buyouts in India led by ICICI Venture. The sale process of ICICI Venture’s stake had witnessed strong interests from several strategic and financial investors, including international majors, the release said.
YES Bank was the exclusive financial advisor to ICICI Venture Ltd. and BMR Advisors assisted TV18 for the transaction.
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