The promoters of Mid-Day are enhancing their investment in the company and the BCG is undertaking to subscribe to a preferential allotment of Mid-Day shares
NEW DELHI: Bennett Coleman Group, publishers of leading newspapers Times of India and Economic Times, has entered into a strategic alliance with Mid-Day Multimedia and will invest Rs 21.11 crore in the company through subscription of a preferential allotment.
The promoters of Mid-Day are enhancing their investment in the company and the Bennett Coleman Group (BCG) is undertaking to subscribe to a preferential allotment of Mid-Day shares, the company said.
While Mid-Day promoters are proposing an incremental investment of Rs 22.56 crore, BCG would make an investment of Rs 21.11 crore at a price of Rs 60 per share, it said.
After the rounds of investments, Mid-Day promoters would have 51 per cent share in the company while BCG would have 6.67 per cent stake, it said, however, adding the investments would be subject to regulatory and shareholder approval.
The Mid-Day promoters were looking at the increased investments in order to support its plans for growth in print, and FM radio in metro markets across the country.
Under the strategic alliance agreement, the two groups would jointly approach various markets in the country to mutual benefit, the company said.
The alliance will benefit both the organisation through cooperation in printing, circulation and advertising sales, it added.
Commenting on the agreement, Bennett Coleman and Co Ltd Executive Director Ravi Dhariwal and Mid Day Multimedia MD Tariq Ansari said in a joint statement that the two companies would endeavour to garner a large market share of both readers and advertising in major metros of the country.
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