NCLT Approves Network18's Merger with TV18 and E18

The Mumbai bench of the National Company Law Tribunal (NCLT) has given final clearance to the merger of TV18 Broadcast and e-Eighteen.com (E18) into Network18 Media and Investments, which is being promoted by Reliance Industries Ltd.

The decision comes ahead of the merger of RIL with Walt Disney's India media companies to become the country's largest media and entertainment conglomerate, which was recently approved by the Competition Commission of India (CCI) and the National conglomerate Law Tribunal. E18 and TV18 will be disbanded without being wound up once the Ministry of Information and Broadcasting (MIB) approves their merger with Network18.

In an order dated September 5, the NCLT required the firms to file copies of the order and scheme with the Registrar of firms within 30 days and with the Superintendent of Stamps for adjudication of any payable stamp duty within 60 days.

It also directed other regulatory agencies to act based on verified copies of the order and plan. TV18 is a publicly traded company that owns a 13.54% stake in Viacom18, which is in the process of merging with Disney Star India. E18, an unlisted company of Network18, owns the news web Moneycontrol.

According to a recent analysis by India Ratings (Ind-Ra), Viacom18 accounts for nearly 80% of Network18's consolidated revenue. However, following Viacom18's acquisition by Star India, Network18's size and scale will be drastically reduced, according to the company. Ind-Ra, on the other hand, stated that this scale decrease will have no effect on the strong strategic and operational ties between Network18 and RIL because RIL's existing news media businesses will continue to be strategically essential.

During RIL's annual general meeting on August 29, chairman Mukesh Ambani stated that Network18 now leads in both general and business news and is the only Indian network with global ambitions. "I believe it is time for India, as the world's most populous nation, to assert its voice and gain its rightful space in the influential global media," he told reporters.

The merged organization will contain TV18's 20 news stations in 16 languages, as well as Network18's digital holdings. On Tuesday, Network18's market capitalization was Rs 9,442 crore, compared to Rs 8,348 crore for TV18. As part of the merger, TV18 shareholders would get 100 shares of Network18 for every 172 shares held by TV18, while E18 owners will receive 19 shares of Network18 for every share held by E18.