Reliance Industries (RIL) was currently trading 0.89% lower at Rs 1,465.30. Shares of Network18 Media & Investments (Network18) (up 5%), Den Networks (up 10%), TV18 Broadcast (up 13.32%) and Hathway Cable & Datacom (up 20%) surged.
RIL announced a consolidation of its media and distribution businesses spread across multiple entities into Network18. Under the Scheme of Arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments. The Appointed Date for the merger shall be 1 February 2020. The broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly owned subsidiaries of Network18.
For every 100 shares, shareholders of TV18 Broadcast will receive 92 shares of Network 18, Hathway shareholders will get 78 shares of Network18 and Den shareholders 191 shares of Network18.
The restructuring shall create value-chain integration, and render substantial economies of scale. The scheme shall also simplify the corporate structure of the group by reducing the number of listed entities.
Reliance Industries is an Indian multinational conglomerate company. The company owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.