KOLKATA: Multi-system operator Den networks has decided not to proceed with the scheme under which TV18 Broadcast, Hathway Cable & Datacom and Den Networks were to merge into Network18 Media & Investments.
“Considering that more than a year has passed from the time the board considered the scheme, the board of the company has decided not to proceed with the arrangement envisaged in the scheme,” it said in a regulatory filing.
In February 2020, Reliance Industries announced a consolidation of its media and distribution businesses spread across multiple entities into Network18. It was planned that the broadcasting business would be housed in Network18 and the cable and ISP businesses in two separate wholly owned subsidiaries of Network18. The restructuring would create value-chain integration, and render substantial economies of scale, Reliance said at that time.
The shareholders are aware that the scheme was filed with both the Bombay Stock Exchange and National Stock Exchange for their no-objection letter, Den Networks stated in the latest filing.
“The Company had also disclosed in its quarterly financial results for the quarters ended 30 June 2020 and 30 September 2020, that the stock exchanges had returned the scheme stating that the company may apply to the stock exchanges once the Scheme is in compliance with SEBI circulars/ SEBI regulations. This pertained to the compliance by the company and Hathway Cable and Datacom Ltd of the minimum public shareholding requirement,” it said.