Mid-Day Multimedia Limited has sold its publication subsidiary Mid-Day Infomedia Ltd to Jagran Prakashan Limited in a share swap deal.

As part of the Scheme of Arrangement, 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. The deal would result in an equity dilution of 4.9%.

Singhi Advisors were the sole advisors to the transaction.

Transaction Reference: DealCurry

Jagran Prakashan operates through Dainik Jagran, which has a total readership of more than 54 Mn. It also offers outdoor advertising, below the line solutions, internet, magazines and value added services.

In February, Independent News & Media Investments Ltd had sold 7.5% stake or 23mn shares in Jagran Prakashan Limited for Rs 255cr to domestic and foreign funds as a part of its strategy to exit non-core assets.

Mid-Day's newspaper business publishes Mid-Day, Sunday Mid-Day, Gujarati Mid-Day and The Inquilab.

Post deal, MML will continue to carry on the radio business through its subsidiary Radio Mid-Day West (India) Ltd.

In FY10, the print business reported a profit after tax of Rs 10 cr. It has an outstanding debt of around Rs 15-20 cr. Mid-Day is valued at around Rs 175 cr based on the current market price.

Rakesh Jhunjhunwala exited Mid-day Multimedia by selling his entire 4.26% stake at par. Jhunjhunwala invested sometime in the September-December quarter of 2004.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
2010-07-28	SnatchKing - Midday Infomedia	M&A	Midday Infomedia Limited	-
2010-05-05	Mid Day Multimedia - Mid Day Infomedia - Jagran Prakashan	M&A	Jagran Prakashan Limited	44.50

 

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  Profiles

Company
Name	Promoters	Office	Competitor	Website
Jagran Prakashan Limited	Dhirendra Mohan Gupta Mahendra Mohan Gupta Yogendra Mohan Gupta Sanjay Gupta	Jagran Building-2, Sarvodaya Nagar	Deccan Chronicle Holdings Limited Mid-Day Multimedia Limited	http://www.jplcorp.in
Mid-Day Multimedia Limited	Tehzeeb Ansari & Family Ferari Investments & Trading Company Private Limited Meridian Holding & Leasing Company Private Limited Inquilab Offset Printers Private Limited	Peninsula Centre,Dr.S.S.Road,Parel,Mumbai-400012.	Jagran Prakashan Limited HT Media Limited	http://www.mid-day.com
Midday Infomedia Limited	Khalid A H Ansari & Group	Penninsula Centre,Dr S.S Road,Opp.Mahatma Gandhi Hospital,Parle(E),Mumbai-400012. Maharashtra, India.		http://www.mid-day.com

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Singhi Advisors

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