Jagran Prakash Buys Mid-Day's Publication Business
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
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 05/05/10 | Mid Day Multimedia - Mid Day Infomedia - Jagran Prakashan | M&A | Jagran Prakashan Limited | 44.50 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 09/05/12 | Venture Capital | Neeraj Goenka | Talentube Entertainment Private Limited | 12.00 | Completed |
| 09/05/12 | M&A | Jyoti Agarwal | DB Corp Limited | 32.66 | Announced |
| 27/04/12 | Private Equity | The Chernin Group | Endemol India Private Limited | - | Completed |
| 27/04/12 | Private Equity | The Chernin Group | OML Entertainment Private Limited (Only Much Louder) | - | Completed |
Company |
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| 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 |
www.jagran.com |
| 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 |
www.middaymultimedia.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. | www.mid-day.com | |
 |
Singhi Advisors |
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