Network 18 Holdings, a subsidiary of the media conglomerate Network18 Media and Investments Ltd, has acquired an additional 14.39% stake in group firm Indian Film Company (IFC). Network18 Holdings acquires a total of 7,913,500 shares in IFC shares at a price of 39.75 pence per share, aggregating to £3.15 million or Rs 25 crore. With this acquisition, the company now owns 19,813,500 Indian Film Company shares, equating to approximately 36% of the issued Indian Film Company shares.
Further to the development, Network 18 Holdings, as per Rule 9 of the UK takeover Code, has to make an open offer for all Indian Film Company shares (other than those already owned by the Network 18 parties). The offer will be made at 40 pence per share. The offer values The Indian Film Company's entire issued ordinary share capital at £22 million or Rs 175 crore and represents a premium of approximately 1.2%.
The shareholder who sold the stake has not been identified. Earlier this year Altima, a hedge fund which held a 14.39% stake in IFC at that time, demanded removal of Raghav Bahl as company's director. Altima, with a group of other shareholders, demanded a review of the business, including an assessment of past performance and future strategy. The dispue was resolved with the appointment of two additional non-executive directors.
Network 18 Holdings is a subsidiary of Network 18 Media and is owned as to 99.99% by Network 18 Media and as to 0.01% by Television Eighteen Mauritius Limited, another Network 18 Group company. Network 18 Holdings is the holding company of TV18 HSN Holdings Limited Cyprus, which in turn owns 100% of the issued equity share capital of TV18 Home Shopping Network Limited, which operates a home shopping service under the brand 'Homeshop 18'.
IFC has investments with a carrying value of £52.06 million with a net asset value (NAV) of 117.32 pence per share. The AIM listed firm posted a net profit of £3.89 million for the fiscal ended 31 March 2009, giving earnings per share of 7.07 pence.
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