Network 18, arms get nod for merger scheme

The National Company Law Tribunal (NLCT) has given Network18 and its subsidiaries TV18 and E18 the go-ahead to proceed with their composite scheme of arrangement.

In its order dated June 5, the Mumbai bench of the NCLT directed the three applicant companies to seek approval from their equity shareholders and unsecured creditors for the merger plan.

Network18 owns 51.17% of TV18 and 91.89% of E18. TV18 also owns a 13.54% stake in Viacom18, which is in the process of merging with Walt Disney’s Star India.

Once the scheme gets all the key approvals, TV18, which is currently a listed entity on both the BSE and the NSE, will be dissolved without winding up.

The meeting of unsecured creditors and the equity shareholders of the three companies to approve the scheme will be held on July 10. The three companies do not have any secured creditors.

Retired Supreme Court judge V Ramasubramanian has been appointed as the chairperson for the meetings. L Viswanathan, senior partner, Cyril Amarchand Mangaldas, will serve as the chairperson in case Subramanian is not able to take up the role. B Narsimhan, proprietor of BN Associates, will be the scrutiniser for the meetings. In case Narsimhan doesn’t become the scrutiniser, Venkataraman K, Partner, BN Associates, will be his replacement. MSN