TV18-Network18 merger: NCLT asks for nod from equity shareholders, unsecured creditors
The tribunal has appointed former Supreme Court judge Justice (Retd) V Ramasubramanian as the chairperson of the meetings
The National Company Law Tribunal (NCLT) has directed Network18 and its subsidiaries TV18 and E18, to get approval from their equity shareholders and unsecured creditors on the proposed merger of the entities into one network.
The Board of Directors of the companies approved the scheme of arrangement on December 6, 2023, wherein TV18 and E18 would merge into Network18.
E18, a 91.89% subsidiary of Network18 owns and controls Moneycontrol website and app and TV18, a 51.17% subsidiary of Network18 is engaged in the media business and it broadcasts general news channels in Hindi, English and other regional languages and business news channels in Hindi, English and Gujarati. Network18 houses a portfolio of digital news websites and magazines.
The Composite Scheme of Arrangement will consolidate into Network18, the broadcasting and digital media business of TV18 and the Moneycontrol business of E18, resulting in all the businesses being housed in one listed company, Network18.
The network has informed the tribunal that a meeting with the equity shareholders and unsecured creditors will be held next month.
The tribunal has appointed former Supreme Court judge Justice (Retd) V Ramasubramanian as the chairperson of the meetings and sought a report on the same within seven days from the conclusion of the meeting.
It also said that “The Chairperson(s) shall file an affidavit not less than 7 (Seven) days before the date fixed for holding the meetings of the Equity Shareholders and Unsecured Creditors of the Applicant Companies and report to this Tribunal that the directions regarding the issue of notices and advertisements have been duly complied with, as per Rule 12 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.”
It also asked the companies – Network18, TV18 and E18 to file an affidavit of service within 10 working days after serving to notify all the regulatory authorities and report to the tribunal that the directions have been duly complied with.
The tribunal was told that as on March 31, 2024, E18 has 264 unsecured creditors having an outstanding amount of Rs 19.58 crore. TV18 has 2,354 unsecured creditors having an outstanding amount of Rs. 1229.32 crore. Network18 has 646 unsecured creditors having an outstanding amount of Rs. 2939 crore.
