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| Exchange Disseminated Time | Infomedia India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 11, 2007, has considered and approved certain proposals.
In this regard the following Press Release are as follows:
"TV 18 has announced the acquisition of at least 53 percent stake in Infomedia India Ltd, India's leading publication Company from an ICICI Venture managed fund. The stake shall be purchased in a staggered manner - 40 percent immediately, followed by an open offer for 20 percent of Infomedia. In the event that the open offer does not garner enough response, then TV 18 has the right to purchase such number of shares from the ICICI Venture managed fund so as to augment its stake up to at least 53 percent. The transaction is subject to statutory and regulatory clearances, wherever necessary.
TVI8 has acquired the above 40 percent stake for a total purchase consideration of Rs 178 crores. This acquisition would enable TV 18 to enter the fast growing publication businesses. TV18 will also benefit from the cross media leverage of its existing brands. YES Bank was the exclusive financial advisor to ICICI Venture Ltd and BMR Advisors assisted TV18 for the transaction.
Infomedia India Ltd has further agreed to issue 50 lakh warrants to TV 18 and 10 lakh warrants to the ICICI Venture managed fund. This issue is as per SEBI pricing norms and this fresh infusion of funds will be used to propel further growth in Infomedia.
Recognizing this as a significant milestone, Mr.Raghav Bahl - Managing Director, Networkl8 said, "This acquisition signifies our commitment to being an integrated player in the media and publishing space. This acquisition has come at an opportune time and will significantly accelerate our publishing growth plans."
Excited at the prospects of being part of a larger media group, Prakash Iyer, Managing Director of Infomedia said that 'We are excited about TV 18's strategic acquisition of Infomedia and look forward to building a bigger organization. Infomedia is already a leading publishing player and this acquisition will enhance the marketing of our value added offerings, which will be extremely relevant in a rapidly changing Indian media market. Our success today is largely also attributable to the continued support and commitment that ICICI Venture has provided to Infomedia'.
Infomedia is one of the first leveraged buyouts in India led by ICICI Venture. The sale process of ICICI Venture's stake had witnessed strong interests from several strategic and financial investors, including international majors. ICICI Venture's Managing Director and CEO, Ms. Renuka Ramnath said "This is definitely a landmark deal in the fast growing media and publishing space between two leading players in the industry. Since the buyout, we have worked hard with the management to build a unique business model that is profitable and scalable. We believe that Infomedia is an excellent platform for TV Eighteen to meet its leadership aspirations in the media and publication space.' This is the second successful leveraged buyout exit by ICICI Venture in the recent past (earlier one being Ace Refractories), indicating the fund's ability to buy out companies, scale them up and make successful exits." |
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