India Today Group is not selling majority stake to anybody: Aroon Purie

Calls media reports in a section of the media as “false rumours” 

BestMediaInfo Bureau | Delhi | November 1, 2012

It all began with a more than significant news item in the respected Business Standard yesterday morning – and for a better part of the day, Living Media India/India Today Group (LMI/ITG) was supposedly selling a majority stake to the Aditya Birla Group (ABG)!

ABG already has around 27.5 per cent in the media house, and the stock markets reacted strongly with the scrip of India Today Group's listed entity, TV Today Network, soaring almost 11 per cent. Some punters would have made their money in a day's trading!

Aroon Purie

The news turned out to be a dampsquib by late afternoon when Aroon Purie, Chairman of India Today Group, issued an internal mail to his employees denying the news. He said: “You may have seen unsubstantiated reports recently in some newspapers/business channels speculating about the Aditya Birla Group (ABG) acquiring majority stake in LMI/India Today Group (ITG).

“These reports are absolutely false and mischievious. These reports were carried in spite of strong denials from both parties. For your information ABG has taken 27.5 per cent shareholding in LMI (ITG). The agreement with ABG clearly states that under no circumstances will the current promoters be diluted to minority. In fact, one of the conditions of ABG's investment in LMI/ITG is that the promoters will remain in majority.”

The internal mail ended: “Do not give any credence to these rumours and do whatever you can to dispel the spreading of such false rumours.”

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