MUMBAI: The Committee of Independent Directors (IDC) linked with TV18 Broadcast has green signaled the open price offer made by Independent Media Trust (IMT) to public shareholders. The go ahead was given by IDC chairman Manoj Mohanka and IDC member Hari S. Bhartia.
The offer made by IMT along with Reliance Industries Limited (persons acting in concert - PAC1) and Reliance Industries Investments and Holding Limited (PAC2) to the public shareholders of TV18 Broadcast was to acquire up to 44,65,10,110 equity shares at a price of Rs 30.18 per share. JM Financial Institutional Securities is the manager of the offer.
The announcement was made through a notice issued by TV18 to the BSE which stated that the IDC "believes that the open offer is fair and reasonable and in line with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011."
According to the IDC, the offer price is higher than the volume weighted average price of the Equity Shares for a period of 60 trading days immediately preceding the date of public announcement. The IDC also gave the go ahead after it sought external financial advice from Price Waterhouse & Co that advised that as of 29 May 2014, the offer price pursuant to the offer is fair and reasonable from the financial point of view.
The approval for the open offer was made after the IDC reviewed (a) the public announcement in connection with the offer dated 29 May 2014 issued on behalf of IMT and the PAC’s public announcement; (b) the detailed public statement in connection with the offer published on behalf of IMT and PAC’s on 5 June 2014 and (c) the draft letter of offer (DLOF) dated 11 June 2011.