Reliance Industries announced on Monday it will merge media and distribution business under the Network 18 brand. As per the plan, TV18 Broadcast, DEN Networks and Hathway Cable & Datacom will be merged into Network 18 Media & Investment. This will create an integrated media and distribution company with a revenue of Rs 8,000 crore.
TV18 Broadcast says the plan will reduce the number of listed companies and simplify the group’s corporate structure. Also, among the listed companies in the media sector, Network 18 Media will grow in stature. This will scale up Network18 as one amongst the most important listed players in the sector. The merger can get impact from 1 February 2020. The board of directorsof the various corporations approved the scheme of consolidation and arrangement.
“The aggregation of a content powerhouse across news and entertainment and therefore the country’s largest cable distribution network under the same umbrella shall boost potency and exploit synergies, creating more value for all stakeholders,” RIL said in a statement.
Besides, the consolidation of cable businesses of DEN and Hathway in one entity will leverage the combined strength of 27,000 local cable operator (LCO) partners who act because the touchpoints to 15 million households in India.
Reliance says that the consolidation of media business will also benefit shareholders of the four companies. Under the merger plan, shareholders will get 92 shares of Network 18 for every 100 shares of TV18 Broadcast. Hathway shareholders will get 78 and DEN shareholders will get 191 shares of Network 18 for every 100 shares.
