The Board of Directors of NDTV Ltd had, at their meeting held on April 16, 2008, constituted a Committee of the Board to evaluate the need and options for reorganization of the Company with the objective of unlocking shareholder value and to promote growth of various businesses of the Company.
The Committee has been in the process of evaluating various options for reorganization of the Company (having regard to successful achievement of the strategic objectives, various regulatory and contractual constraints and the interests of all stakeholders) and has recommended separation of the Company's businesses into separate entities principally divided along news-plus and entertainment-plus lines.
The news-plus and entertainment-plus businesses are subject to different foreign shareholding caps under Indian regulations. Post reorganization, the sectoral cap applicable to news is not expected to apply to the entertainment-plus businesses.
The proposed reorganization would enable investors to hold investments in the resultant companies based on their investment strategies and risk perception.
The reorganization, when approved and implemented, would thus result in the creation of separately listed entities in India.
Based on the recommendations of the Committee, the Board has approved the principle of reorganization the businesses of the Company. The Board has authorized the Committee to appoint Consultants, Tax and Regulatory Advisors and Valuers as may be necessary for evaluating various options with a view to working out a detailed plan including Scheme of Arrangement (if necessary) for the approval of the Board.
The Stock closed the day at Rs.379.90, up by Rs.1.65 or 0.44%. The stock hit an intraday high of Rs.385 and low of Rs.369.05.
The total traded quantity was 31567 compared to 2 week average of 68962.
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