With this, TVTN proposes to consolidate the news business of Mail Today with the channel business of TVTN to bring editorial and business synergy. The board also proposed reorganisation of its radio business
BestMediaInfo Bureau | Mumbai | December 14, 2016
Living Media India (LMIL) holds 66.78 per cent of the total equity shares of Mail Today, through its wholly-owned subsidy, India Today Online (ITOPL) and for the purpose of the above acquisition, shall transfer all equity shares of ITOPL to the company by way of a gift. AN (Mauritius), the other shareholder holding 25.21 per cent of the equity shares of Mail Today, shall transfer all the equity shares held by it in Mail Today by way of gift, which shall result in Mail Today becoming a wholly-owned subsidiary of the company.
The fair value of the deal which is acquired by way of gift amounts to Rs 36.92 crore as at March 31, 2016. The said shares shall be accounted for at fair value on the date of acquisition of shares, in accordance with the Indian Accounting Standards (Ind AS), resulting in a corresponding increase in the reserves of the company.
The total fair value loss in connection with the investment in Mail Today shares, presently held by the company, amounted to Rs 42.30 crore.
With this, TV Today Network (TVTN) proposes to consolidate the news business of Mail Today with the channel business of TVTN to bring editorial and business synergy. The indicative time period for completion of the acquisition is approximately three months.
The board has also approved the acquisition of 100 per cent of Vibgyor Broadcasting for the purpose of reorganising its radio business by transferring its radio business through slump sale into the aforesaid entity.