Independent News & Media Investments Ltd has sold 7.5% stake or 23mn shares in Jagran Prakashan Limited for Rs 255cr (42mn Euros) to domestic and foreign funds as a part of its strategy to exit non-core assets.
Post sale, the company's holding will reduce to 5.7%. ICICI securities Ltd was the advisor to INM on the transaction.
The proceeds will be used to pay of INM's bank debt which is estimated to reduce to 500-550mn euros after this transaction. The exact debt positioned can be ascertained after it publishes its 2009 financial results later this month.
Transaction Reference: ET
Independent News & Media Investments Ltd is a wholly owned subsidiary of Independent News & Media PLC, a leading international newspaper and communications group. INM publishes the The Independent newspaper.
INM had acquired a 26% stake in JPL in 2005 at Rs467 per share from Jagran's promoters- Gupta Family. At that time, the deal financed from Independent’s cash balances.
The stake got diluted to 20.8% after JPL issued fresh equity in its IPO in 2006. In July 2009, INM sold a 7.3% stake in Jagran (22 mn shares) at Rs 67.39 per share.
INM has pocketed around Rs 400cr from the latest sale and the one in July.
However, INM subsequently received bonus shares in JPL, adjusting for which, the effective price of acquisition becomes Rs143.7. In addition to this, JPL also undertook a stock split, which means that now the face value is Rs2 as compared to Rs 10 at the time of acquisition.
INM also received dividends all these years from the profit-making JPL.
INM's remaining holding in Jagran is worth around Rs 200cr.
INM’s financial difficulties have been known for a while now. The company was facing bankruptcy last year reported by an Irish newspaper.
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 04/08/10 |
Jagran Prakashan - Independent News & Media (Exit) |
M&A |
Entity Not Known |
43.25 |
| 09/03/10 |
Jagran Prakashan-Independent News (Partial Exit) |
M&A |
Entity Not Known |
56.00 |
| 01/07/09 |
Jagran Prakashan - |
M&A |
|
- |
| 31/01/06 |
Jagran Prakashan Limited - IPO |
IPO / Offerings |
|
72.90 |
| 31/12/04 |
Jagran Prakashan - Independent News Services |
M&A |
Independent News Services Private Limited |
38.67 |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 02/02/12 |
M&A |
The Walt Disney Company |
UTV Software Communications Limited |
- |
Announced |
| 24/01/12 |
M&A |
Legrand India Private Limited |
Unknown |
- |
Planned |
| 19/01/12 |
IPO / Offerings |
|
Ram Kaashyap Investment Limited |
75.00 |
Completed |
| 17/01/12 |
M&A |
Marico Limited |
Unknown |
- |
Planned |
Company |
| Name | Promoters | Office | Competitor | Website |
| Jagran Prakashan Limited |
Mahendra Mohan Gupta & Family |
Jagran Building-2,
Sarvodaya Nagar,
Kanpur-208005. |
Deccan Chronicle Holdings Limited
Mid-Day Multimedia Limited |
www.jagran.com |
 |
ICICI Securities |
