Mumbai : The Board of Directors of Hinduja Ventures Limited (HVL) owned Grant Investrade Limited (GIL) noted the scheme of arrangement with the wholly owned subsidiary of the Company and IndusInd Media and Communications Limited (IMCL), a subsidiary of the Company, wherein GIL will de-merge its Head-end-in-the-Sky (HITS) business undertaking to IMCL.
The Scheme is subject to consent(s), approval(s) permission(s) of statutory authorities(s) if any, including in particular, the approval from the Ministry of Information and Broadcasting, Government of India for transfer and vesting of HITS License held by GIL in favor of IMCL
The company also envisages that this will further enhance shareholders value by consolidating the Digital Media distribution businesses and will help to rationalize the group structure by optimizing the resources and integrating operational synergies both in revenue and costs. The combined entity will also be able to venture and grow in the newer areas and many upcoming linked digital technology values adds that would be relevant for this business and same set of customers. The
Broadband business has been also restructured for a direct focus and is planned for a manifold technology based growth.
The synergy will be able to consolidate HVL’s media investments and would surely enhance and maximize the shareholders value. The HITS business undertaking of GIL’s merger in IMCL will be a unique first in the country in Digital cable and has a long term positive financial implication by increasing competitive strength, technology synergies, customer service efficiency and high productivity with a genuine all India reach. Similar models in developed countries have witnessed a prime leadership position in midterm to long term.
This arrangement will also strengthen HVL’s investment in media business which will in turn unlock the value of HVL’s shareholders. The said scheme was approved by the Board of Directors of GIL and IMCL at their meetings held on July 21, 2016 and noted in the HVL Board on July 22, 2016.
The Board also approved the conversion of 10,00,000 1% Participatory Redeemable Non-Cumulative Preference Shares (“1% PRNCPS”) of Rs. 10/- each held in Grant Investrade Limited (GIL) in to Equity Shares. GIL will issue its 634,518 Equity Shares of Rs. 10/- each against the conversion of 10,00,000 1% PRNCPS.
IndusInd Media & Communications Limited (‘IMCL’) and of Grant Investrade Limited (GIL) has launched the HITS Digital distribution platform under brand name NXT DIGITAL.