Friday, November 28, 2008

Television Eighteen To Increase Stake In The Company - Nov 28, 2008

Television Eighteen India Ltd has informed that the Company has decided to subscribe to 15,000,000 warrants of ibn18 Broadcast Ltd (ibn18) to be allotted on preferential basis, which would be convertible into equity shares of ibn18 at Rs 102 per share. This allotment shall be made at the same price at which ibn18 has allotted shares, to Qualified Institutional Buyers in its recently concluded QIP.

TV18 will make this subscription via RVT Investments Pvt Ltd (RVT Investments), a 100% subsidiary of TV18, which currently holds 23,454,495 equity shares of ibn18. Once RVT Investments converts the current issue of 15,000,000 warrants of ibn18, RVT Investments holding in ibn18 will be 20.77% on a fully diluted basis. This will enable TV18 to consolidate ibn18s financial results with itself.

TV18 believes this strategic initiative is extremely beneficial for its shareholders, since ibn18s bouquet of TV channels is entirely synergistic with TV18s business news channels and Web18s family of internet portals. This equity stake will also allow TV18 to get strategic ownership in what is arguably the strongest bouquet of TV channels in the country, including TV18s two business news channels (CNBC-TV18 and CNBC Awaaz) and ibn18s seven general interest channels (Colors, CNN-IBN, IBN7, IBN Lokmat, MTV, Nickelodean and VH1).

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