ZEEL gets MIB, DPIIT approval for transfer of digital publishing biz to Rapidcube

ZEEL has got the approval from Ministry of Information and Broadcasting (MIB) and Department for Promotion of Industry and Internal Trade (DPIIT) to transfer the digital publishing business division to Rapidcube Technologies through a Business Transfer Agreement. Rapidcube is the wholly owned subsidiary of news broadcaster Zee Media Corporation.

"This is further to our communication dated December 17, 2020, provided the requisite details, pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015, pertaining to transfer of Digital Publishing Business Division of the Company to Rapidcube Technologies Private Limited ("Rapidcube") through a Business Transfer Agreement," ZEEL said in a filing on the BSE.

"In this regard, we wish to update that the Company has received the approval from Ministry of Information and Broadcasting and Department for Promotion of Industry and Internal Trade, as required under the press note 4 of 2019 dated 18th September 2019 and the provisions of Foreign Exchange Management Act, 2000."

The company reported exceptional expenses of Rs 29.5 crore towards goodwill impairment charges on the sale of its digital publishing business to Rapidcube Technologies (related party).

On 17 December 2020, the ZEEL board had approved the transfer of the digital publishing business division of the company to Rapidcube Technologies (Rapidcube) through a business transfer agreement. The digital publishing business division of the company was valued at Rs 63.77 crore. It contributed Rs 32.80 crore revenue in FY19-20 which constituted 0.5% of the total standalone business. The division contributed net worth of Rs 63.20 crore in FY 19-20.