Viacom18 Media Pvt Ltd, a 50:50 joint venture between Viacom Inc and IBN 18 Broadcast Ltd, has acquired a 93.96% in London-listed The Indian Film Company Limited (TIFC) and now plans to delist the firm. Viacom18 had made the offer to acquire TIFC shares at a price of 115.56 pence on 1 October. The offer was made through Viacom18's
subsidiary Roptonal Ltd.
"Roptonal also announced that it intends to procure that an application be made to the London Stock Exchange for the cancellation of admission to trading on AIM of IFC shares," it said in a statement. The cancellation will take place at 7.00am on 19 November 2010 and that cancellation will take place without the approval of IFC shareholders.
TIFC had a £20.62 million market capitalisation on the London's Alternative Investment Market.
This is the second attempt by Network 18 group to buyout TIFC completely. Last year TIFC had received a mandatory cash offer from Network 18 (a subsidiary of Network 18 Media & Investments Limited) for the entire issued share capital of the company. Network 18 group held almost 36.02% of TIFC before the offer and their combined holding shot up to 80.38% post offer.
TIFC is a closed-ended investment company engaged in the production, acquisition, sale, and distribution of Indian films and related content worldwide.
For the year ended March'10, it recorded net loss of £4.56 million compared to net profit of £3.89 million in the previous year as it was affected by the producers tiff with cinema operators. Its net asset value as at 31 March 2010 was 115.56 pence per ordinary share, 1.5% lower compared to the year ago period. It also has committed to invest £13.42 million in film projects.
TIFC released nine films last year including "Shortkut - The Con is On", "Luck", "Life Partner", "Fruit 'N' Nut", "Striker", "Road, Movie" and "Hum Tum Aur Ghost". These movies were a combination of acquisitions, co-productions and productions.
