TV Today to absorb radio company; share swap ratio fixed

TV Today to absorb radio company; share swap ratio fixed

MUMBAI: TV Today Network Ltd (TVNL) has decided to merge its group subsidiary Radio Today Broadcasting Ltd (RTBL) with itself which will lead to an increase in the promoter‘s shareholding.

This puts the current value of the radio company at around Rs 938 million. The shares of TVNL ended Friday at Rs 170.55 on the BSE.

TVNL board has approved the share swap ratio wherein shareholders of RTBL will get five shares of TV Today for every nine shares. This will result in fresh issue of 5.5 million shares of Rs 5 each to the shareholders of RTBL. was the first to report of the merger plan.

"It is a good opportunity for TV Today to expand into other genres. And for the radio business, once it is fully operational, the potential is huge. Besides, the radio business goes public without any IPO (initial public offering) cost," a senior executive in the company said.

The merger is, however, subject to the approval of the High Court and other regulatory clearances as may be required.

The promoters of TV Today will increase their stake by around 3.5 per cent after merger," the executive added. Their current holding is around 55.69 per cent in TV Today.

TV Today, a listed company which runs a slew of news television channels including Aaj Tak and Headlines Today, was holding a 10 per cent stake in Radio Today. The balance was held by the Living Media Group, the promoters of TV Today.

Anil Ambani‘s Reliance Capital had made an open offer for increasing its stake in TV Today by 20 per cent but it wasn‘t aggressively priced.

Radio Today has already launched in Delhi and Kolkata under the Meow brand and is positioned as a women‘s station with only talk format shows. The Living Media group company has won licenses paying a fee of Rs 280 million to operate in seven stations in the second phase of FM expansion after selling Red FM to a clutch of investors comprising infotech company Value Labs, Malaysia-based Astro and NDTV. Red FM was operating in the circles of Delhi, Mumbai and Kolkata.