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TV Today starts process to fully acquire Mail Today; radio biz being reorganised


24 Mar 2016
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TV Today Network has started the process of making Mail Today a wholly owned subsidiary of the company while the radio business will be reorganised.

Mail Today being fully acquired

Consolidating the news business, the board of directors of TV Today Network has approved the acquisition of Mail Today Newspapers Pvt Ltd (MTNPL), which runs a daily tabloid, from its other shareholders comprising the India Today Group and Daily Mail.
Living Media India Ltd (LMIL) and AN (Mauritius), the two shareholders holding 66.78% and 25.21% respectively in MTNPL, will transfer their entire holding to TV Today Network by way of a gift. This will make MTNPL a wholly owned subsidiary of the company.

AN (Mauritius) is a subsidiary of Daily Mail and General Trust (DMGT), which owns UK’s leading tabloid Daily Mail. The deal marks DGMT’s exit from India.

LMIL holds its interest in MTNPL through a wholly owned subsidiary, India Today Online Pvt Ltd (ITOPL). LMIL will gift its entire holding in ITOPL to TV Today Network.
The company hopes to complete this acquisition in three months.

TelevisionPost.com had earlier reported that TV Today Network, which owns and operates news channels Aaj Tak and India Today TV, would have a print presence with the full acquisition of English daily Mail Today.

The fair value of the Mail Today shares to be acquired by the company by way of gift amounted to Rs 36.92 crore as on 31 March. Of this, LMIL’s shares are worth Rs 26.80 crore while AN (Mauritius)’s shares are worth Rs 10.12 crore.

According to TV Today Network, the said shares would be accounted for at fair value on the date of acquisition of shares, in accordance with the Indian Accounting Standards (Ind AS), resulting in a corresponding increase in the reserves of the company.
The company proposes to consolidate the news business of Mail today with the channel business to bring editorial and business synergy.

MTNPL’s authorised capital is Rs. 135 crore while the issued, subscribed and paid-up capital is Rs.129.09 crore. Mail Today had posted a net loss of Rs 6.01 crore on revenue of Rs 40.43 crore in 2015–16.

Radio biz being reorganised
The board of TV Today Network has also approved the acquisition of 100% of the issued and paid-up capital of Vibgyor Broadcasting Pvt Ltd for the purpose of re-organising its radio business by transferring its radio business through a slump sale into the entity.

The company expects to complete the slump sale of radio business to Vibgyor by 31 March 2017. The date on which the agreement for sale will be signed will be decided in the next board meeting. During 2015–16, the turnover from radio business was Rs 10.37 crore.

The transfer of radio business into a separate company is being done to segregate the radio business operations and to have better focused management for the same and enhance the business value of the subsidiary.

TV Today starts process to fully acquire Mail Today; radio biz being reorganised | TelevisionPost.com
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