Hinduja Ventures Ltd. late Tuesday announced the reorganization of its media business.
The company stated that the board of Hinduja Ventures Limited ("HVL") approved the scheme of arrangement between lnduslnd Media and Communications Ltd. (Demerged Company) and Hinduja Ventures Ltd. and their respective shareholders.
The IndusInd Media & Communications Limited ("IMCL") business consists of digital content distribution using multiple platforms such as satellite and fibre. It also carries broadband and Internet business carried out through its subsidiary OneOTT Intertainment Limited ("OIL"). IMCL also has a dedicated unit that develops content for various platforms and owns a significant content library and movie negatives.
HVL believes that this media business has a high growth potential going forward due to a fast maturing industry and recent regulatory reforms like New Tariff Order ("NTO"). These stimuli provide the right opportunity to consolidate media vertical which will propel it to the next level of growth and performance. The exchange ratio for the proposed restructuring exercise shall be 10 equity shares of HVL fully paid up for each 125 equity shares of IMCL fully paid up.
Benefits of this consolidation into a single group will achieve flexibility, scale and financial strength. Upon segregation of identified business undertaking, post restructuring the Company shall be able to achieve higher long-term financial returns, increased competitive strength, cost reduction and efficiencies, productivity gains, and logistical advantages, thereby significantly contributing to future growth in their respective business verticals.
The appointed date of the scheme of arrangement will be October 01, 2019 after securing all statutory and regulatory approvals, the company concluded.
Hinduja Ventures Ltd ended at Rs330.50 up by Rs12.4 or 3.9% from its previous closing of Rs318.10 on the BSE.
The scrip opened at Rs330 and touched a high and low of Rs337 and Rs329.85 respectively. A total of 3,039 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs687.68cr.
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