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MUMBAI:
News broadcasters diversifying into general entertainment
areas are wanting to house these two lines of businesses in
separate entities. The reason: news has a foreign holding
restriction of 26 per cent.
The
latest to explore this strategy is NDTV Ltd. The company said
on Wednesday it will consider splitting its operations into
'news related' and 'beyond news' businesses.
The
creation of focused entities would help it bring in strategic
and financial partners, NDTV said.
Pursuing
this line of thought, NDTV board has decided to constitute
a committee to evaluate various options. The company will
take appropriate steps including appointment of financial
and legal advisors.
The
reorganisation could include de-merger/split of the company
into news-related businesses and investments in 'Beyond News'
which are currently held through its subsidiary NDTV Networks
Plc.
NDTV
said the above reorganisation plan once finalised, would be
subject to requisite statutory process and approvals.
NDTV Networks holds the company's entertainment, lifestyle
channels and digital media businesses and includes the units
NDTV Imagine, NDTV Labs and NDTV Lifestyle.
In
January, NDTV had agreed to dilute 26 per cent in NDTV Networks
to NBC Universal Inc for $150 million.
Meanwhile,
NDTV board has recommended a dividend of 20 per cent of the
face value of shares (Rs 4).
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