Zee Entertainment Board on Thursday approved the transfer of digital publishing business division of the company to Rapidcube Technologies Private Limited.
“This is to inform you that the Board of Directors of the Company at its meeting held today i.e. December 17, 2020, has, subject to requisite approvals, considered and approved the transfer of the Digital Publishing Business Division of the Company to Rapidcube Technologies Private Limited CRapidcube”) through a Business Transfer Agreement,” the company said in BSE filing.
The digital publishing business division of the company is valued at ₹637.7 million. It contributed ₹328 million revenue for FY19-20, constituting nearly 0.5% of the total standalone business. Net worth contributed by this digital publishing business division for FY 19-20 was ₹632 million.
“The date of completion of transfer of the digital publishing business division to Rapidcube Technologies Private Limited (“Rapidcube”) would depend upon receipt of relevant approvals and completion of conditions precedent (as identified in the agreement for transfer of the business),” the company said in a statement.
“Consideration of ₹637.7 million to be discharged by Rapidcube by way of issuing its equity shares of ₹10- each to the company, subject to working capital adjustments on the date of transfer as mentioned in the business transfer agreement,” the company said.
Established this year, Rapidcube is a private company limited by shares and is the wholly owned subsidiary of Zee Media CorporationLimited. The Authorized and paid-up equity share capital of Rapidcube is ₹10,00,000 as on date.
