India’s number one publisher of business directories and special interest magazines, Infomedia India has found a third owner since its inception. ICICI Venture, which bought 50% stake in Infomedia from Tata for Rs.123 crore and 13% through open offer, has now sold its 40% stake to TV18 for Rs.178 crore.
Following the buyout TV18 would make a mandatory open offer for 20% at Rs.237 per share and if the open offer fails, then TV18 has an option to buy addition 13% stake from ICICI Venture.
The acquisition will help Network 18 group in further widening its media portfolio and would jell well with its existing activities thus aiding the group’s growth.
Infomedia will also complement TV18 as the Raghav Bahl owned company could cross leverage the existing brands.
For ICICI Venture, it is a case of leveraged sell off and they have earned a handome return of 81% since they bought the company in 2003. For Infomedia, it may mean better growth rates in future as they have come from the clutches of a financial investor into the hands of a media conglomerate.
Find this article at: http://www.labnol.org/india/corporate/tv18-ventures-into-print-publishing-biz-buys-infomedia/1914/
