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| Exchange Disseminated Time | Mid-day Multimedia Ltd has informed BSE regarding a Press Release dated May 05, 2010 titled "Mid-Day Multimedia announces the merger of its newspaper business with Jagran Prakashan Ltd".
Press Release :
"Mid-Day Multimedia Ltd ("MML"), announced today that it will be merging its newspaper business with Jagran Prakashan Ltd ("JPL").
MML's publication business which is run through its subsidiary Mid-day Infomedia comprises the iconic afternoon newspaper Mid-Day (published from Mumbai, Pune, Bangalore and Delhi), Sunday Mid-Day, Gujarati Mid-Day and the largest read Urdu newspaper in the county. The Inquilab, and the rapidly growing website mid-day.com.
JPL is India's leading media and communications group, with the group's flagship brand, Dainik Jagran, being the most widely read newspaper in the country with a total readership of 54.2 million. Besides Dainik Jagran, JPL also has compact newspapers known as I-Next, a bilingual youth oriented city centric daily and City Plus, an English infotainment community weekly DainikJagran, which publishes 37 editions and more than 200 sub-editions across 11 states, has maintained its position as India widest read newspaper for the last six years. JPL has evolved as a leading end-to-end media solutions provider with interests across newspapers, outdoor advertising, below the line solutions, internet, magazines and mobile value added services. Its web portal jagran.com in association with yahoo is the most visited portal across all Indian languages and khojle.in is a recently launched classified portal.
As part of the Scheme of Arrangement which has been passed by the Board Of Directors of both MML and JPL; the publishing business of Mid-Day Multimedia Ltd would be demerged and transferred to JPL. For the Demerged publication business, the MML Shareholder will receive 2 shares of JPL for every 7 shares held as on the Record Date. The current management of Mid Day Infomedia under leadership of Mr. Tarique Ansari and Mr. Manajit Ghoshal would continue to run the publication business and grow the business to the next level, subject to overall control and superintendence of Board of Directors comprising of majority of JPL's nominees. The Ansari family will hold investment in the publishing business post completion of demerger.
As a result of this merger, JPL through its various publication brands and other media related businesses such as outdoor and event and the resources at its disposal will help in meeting more effectively the high intensity competition being faced by the publishing business and in rapid expansion of various publication brands in its existing as well as new markets, internet properties and other related activities of Mid-Day, thereby enhancing the value of brand Mid Day and its own business for the benefit of all the stakeholders of both the companies.
Upon the coming into effect of the Scheme, MML will continue to carry on the Radio Business through its subsidiary Radio Mid-Day West (India) Ltd and the shares of MML will continue to remain listed on Bombay Stock Exchange Limited and National. Stock Exchange of India Ltd.
Commenting on the association, Tarique Ansari - Managing Director of Mid-Day, said: "The newspaper business will see some significant challenges in the years to come. Scale and access to resources will be critical factors in the success of any newspaper company. By aligning with Jagran we will be able to pool resources with the largest newspaper group in the country to grow profitably and deliver better value to shareholders".
Singhi Advisors were the sole advisors to the transaction." (For more details kindly refer Corporate Announcements on www.bseindia.com). |
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