Network18 Media and Investments is set to sell its stake in NewsWire18 to PE firm Samara Capital.

Network18 has a majority shareholding in the company.

The stake sale will be done at a price R90 Cr and is in line with the company’s plan of focusing on core business of television and digital, inwardly monetizing the non-core assets.

BMR Advisors acted as the sole transaction advisor to Network18 and Finsight Financial Advisors assisted NewsWire18 on the transaction.

Network18 is backed by SAIF Partners (7.49% stake) and Acacia Partners (4.90%) among other investors.

NewsWire18 will also be known by a different name in the coming 90 days post the transaction.

Earlier this year Network18 had monetized other assets like selling its stake in Capital18 investee company – NetworkPlay and partial dilution of stake in ticketing portal – Bookmyshow.com.

Late last year, Thomson Reuters was rumored to acquire 20-25% stake in NewsWire18 and Raghav Bahl of Network18 had set a valuation target of R250 Cr at that time.

NewsWire18, a financial data and news agency, was formed by acquiring the staff and business of CRISIL MarketWire Ltd., a local financial news agency, in 2006.

It has more than 100 editorial staff across 9 bureaus and publishes the MoneyWire, the EquityWire, the CommodityWire, and the FundWire.

In the space, Adtiya Birla Group was planning to increase stake in Aroon Purie led Living Media to 51% by acquiring additional 23.5%.

Last month Zee Entertainment and TV Today Network were planning to acquire NDTV Profit, a financial news channel of NDTV.

English news channel NewsX was also acquired by Information TV (ITV) Media for an undisclosed amount this year.

Samara Capital’s investments include companies like Flemingo Duty Free, Thriveni Earthmovers, Monte Carlo Fashions, Thyrocare Technologies and Ratnakar Bank.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
2012-12-03	Network18 (Exit) - NewsWire18 - Samara Capital	Private Equity		16.50
2011-12-16	Newswire18 - Thomson Reuters	M&A		-

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
15/04/2013	Private Equity	CX Partners	Transaction Solutions International (India) Private Limited	22.35	Completed
12/04/2013	Private Equity	OCP Asia Limited	TV18 Home Shopping Network Limited	30.00	Completed
02/04/2013	Private Equity	Norwest Venture Partners	Trendsutra Platform Services Private Limited	8.00	Completed
01/04/2013	Private Equity	eBay Inc.	Jasper Infotech Private Limited	49.90	Completed

 

  Profiles

Company
Name	Promoters	Office	Competitor	Website
Network18 Media & Investments Limited	Raghav Bahl	503 504 & 507 Mercantile House, 5th Floor 15 Kasturba Gandhi Marg	New Delhi Television Limited (NDTV) TV Today Network Limited	http://www.network18online.com
Newswire18 Limited	Pankaj Aher Abhijit Doshi	Empire Complex, 1st Floor, 414 Senapati Bapat Marg, Lower Parel		http://www.newswire18.com

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BMR Advisors

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