Mumbai, Feb 18 (IANS) Shares of Network18, TV18, Hathway and Den Networks surged on Tuesday after Reliance Industries’ announcement of consolidating the four entities into Network18.
Late on Monday evening, RIL announced a consolidation of its media and distribution businesses spread across multiple entities into Network18 and said that its stake in Network18 will reduce from 75 per cent to 64 per cent upon implementation of the scheme.
At 10.30 a.m., stocks of Network18 on the BSE were at Rs 30.05, higher by 4.89 from the previous close, and shares of TV18 were 14.12 per cent higher at Rs 28.70 per share.
Hathway Cable Datacom was at Rs 23.10 up 20 per cent, and stocks of Den Networks were up nearly 10 per cent at Rs 59.50 per share.
In its statement on Monday, RIL said: “The appointed date for the merger shall be February 1, 2020. The Board of Directors of the respective companies approved the scheme of amalgamation and arrangement at their meetings held today.”
The broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly owned subsidiaries of Network18. The company said that the restructuring would create value-chain integration, and render substantial economies of scale.
Post the consolidation, Network18 will be an integrated media and distribution company with a revenue of Rs 8,000 crore and will scale-up as one of the largest listed players in the sector, according to the company. Network18 will be net-debt free at consolidated level, providing a solid base for growth as well as improved shareholder returns, the statement said.