Reliance Industries Ltd. (RIL) plans to consolidate its media and distribution businesses spread across multiple entities into Network18, in a move that will make Network18 an integrated media and distribution company with a revenue of ₹8,000 crore.
“Under the Scheme of Arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments,” the company said in a statement, adding that 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 on Monday.
Shares ratio
Under the scheme, 92 shares of Network18 will be given for every 100 shares of TV18, 78 shares of Network18 for every 100 shares of Hathway, and 191 shares of Network18 will be given for every 100 shares of Den.
The broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly owned subsidiaries of Network18.
RIL said the restructuring shall create value-chain integration and render substantial economies of scale.
