CNBC may hold up to 15% stake in TV-18

NEW DELHI: CNBC Asia may hold up to 15 per cent equity stake in Television Eighteen Ltd., which also recently obtained a licence to uplink from India.

Though neither TV-18 nor CNBC Asia agreed to throw some official light on the issue, market analysts said that keeping CNBC Asia shareholding within the 15 per cent limit would help TV-18 not having to go in for an offer, a clause that would get triggered off if the percentage of the shareholding being offloaded by a listed company is more than 15 per cent.

"We are quite happy with a minority stake as it is more important to work with a good partner," CNBC Asia Pacific president and CEO Alexander Brown told

Moreover, the NBC and Dow Jones company CNBC Asia's shareholding cannot be 26 per cent as till today evening, the existing foreign component in TV-18 already amounted to about 11 per cent --- a figure that may vary from day to day --- in the form of NRI/OCB/FII holdings.

This means that if today, CNBC Asia wanted to quantify its shareholding in the company, which has not happened officially anyway, then it would have amounted to just 15 per cent, while the total foreign holding in TV 18 would have amounted to 26 per cent.

"The existing foreign holding in the company would be a big factor in determining the other aspects of the agreement, including the valuation of the company," Television Eighteen Ltd. MD Raghav Bahl told on the sidelines of a press conference organised here to announce the restructuring of the company as per Indian government rules that say total foreign shareholding in a company, desirous of uplinking news content from India, cannot be more than 26 per cent.

The TV-18 scrip today closed 3.7 per cent higher at Rs. 85 on the Bombay Stock Exchange, while the main index slipped 0.53 per cent.

The restructuring move comes ahead of the stipulated 90-day deadline given by the Indian government. After this, all eyes would be on Star News that also has to comply with rules within the stipulated period.

Pointing out that, in fact, the restructuring would amount to a demerger, Bahl said that it has to be examined whether a separate entity, like TV 18 Business News, for instance, needs to be created to complete a complex restructuring.

After the restructuring is complete, the business news channel would be rechristened CNBC India-TV 18 as part of a co-branding exercise.

"The Mauritus-registered CNBC India, a 51:49 joint venture between CNBC Asia and TV-18 that used to manage the affairs of the business news channel, would cease to operate," Bahl said.

Since the valuation of TV-18 has not yet been undertaken --- "the mandate for that will be given now," according to Bahl --- both CNBC Asia and TV-18 could not disclose the amount that CNBC would pay for the strategic equity stake in TV-18.

Earlier, Television Eighteen India informed the Bombay Stock Exchange that it will comply with the government order issued in mid-March restricting foreign equity investments in news and current affairs channels to 26 per cent or below. It sent a notice to the BSE stating the same early this morning.

Latest Reads
LIVE Coverage of Tour De France on DSPORT this year

LIVE Coverage of Tour De France on DSPORT this year

Television TV Channels Sports
Business news most benefited genre in Chrome DM week 24

With a growth of 1.24 per cent as compared to last week (23), the business news genre marked the highest opportunity to see (OTS) among all categories in week 24. Zee Business gained the highest OTS with 84.3 per cent in six metros, according to the data compiled by Chrome Data Analytics and Media...

Television TV Channels Viewership
Zee TV to launch the third season of 'India's Best Dramebaaz'

MUMBAI: Locked in a see-saw battle with Colors for top billing in the Hindi GEC space, Zee TV has made its latest move. The Puneet Goenka-led channel's latest offering to the Indian audiences is season three of 'India's Best Dramebaaz'. Having enjoyed a successful run during the first two seasons...

Television TV Channels GECs
Sony to soon launch Indian Idol season 10

MUMBAI: Indian Idol, one of Sony’s most acclaimed reality shows, is all set to come back on small screen with its tenth installment. Considering that all its previous seasons have done exceedingly well, there are great expectations this year as well. Sony has released its first promo, captioned #...

Television TV Channels GECs
VIVO IPL: VIVO IPL on Star Sports register highest ever engagement

Revolutionizing the way, the world experiences VIVO IPL, Star India reimagined VIVO IPL in to a six-month fiesta instead of just a two-month tournament. Keeping fans at the heart of the experience, Star India used the confluence of technology, consumer insight, and experience in cricket coverage,...

Television TV Channels Sports
Abhishek Upadhyay joins &TV as marketing head

Abhishek Upadhyay, who headed marketing for OLX, has been appointed marketing head of &TV, the Hindi language GEC channel of Zee Entertainment Enterprise Limited (ZEEL).

Television TV Channels People
Saral Jeevan adds three new programs to its prime time offering

Saral Jeevan, a Kannada infotainment channel, is launching three shows today. While one of them is season two of Jnanapada (based on folk songs), the other two programs are based on factual content. With a focus on non- fiction programming like history, mythology, travel and insights from Indian...

Television TV Channels News Broadcasting
Discovery joins hands with BYJU’S for quiz show

Discovery Communications India and BYJU’S, the Learning App, has joined hands to launch a school quiz show called the Discovery School Super League.

Television TV Channels Factual & Documentary
Time Warner to be renamed Warner Media, Turner CEO exits

AT&T announced on Friday, its first full day of owning Time Warner, that the operating businesses in the $85 billion acquisition will be contained in an entity called WarnerMedia. The names of the operating units - HBO, CNN, Warner Bros., TNT, etc. - will stay the same.

Television TV Channels People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories