Jagran Prakashan Ltd has announced that the Board of Directors of the Company at its meeting held on May 05, 2010, has approved the Scheme of Arrangement under sections 391 to 394 of the Companies Act, 1956. The Scheme of Arrangement, subject to necessary approvals and consents, will result in demerger of PRINT BUSINESS from MML and transferring it to JPL with effect from April 01, 2010.

The PRINT BUSINESS run by MML through its wholly owned subsidiary Mid-Day Infomedia Ltd (MIL) comprises of publication brands viz. Mid-Day (published from Mumbai, Pune, Bangalore and Delhi), Sunday Mid-Day., Gujarati Mid-day and The Inquilab, the largest read Urdu newspaper in the country and all publication related internet properties.

The valuation of the two businesses has been done by Ernst and Young Pvt Ltd and swap ratio as per their report dated May 05, 2010 works out to be 7 : 2 (i.e. for each 7 fully paid up equity shares of Rs. 10 each of MML, its shareholders will be entitled to 2 fully paid up equity share of Rs. 2 each of JPL).

The radio business of Mid-Day Multimedia Ltd, operated through its subsidiary Radio Mid-Day, will continue to stay with the present shareholders of Mid-Day Multimedia Ltd.

Singhi Advisors were the advisors to the transaction.

Also Read

Mergers & Acquisition Round up - April 26 to April 30, 2010

Click here for more M&A news