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MIL during the year 2009-10 has recorded sales and operating revenue of nearly Rs.95 crores with operating margins exceeding 20%.
The radio business of Mid-Day Multimedia Limited, operated through its subsidiary Radio Mid-Day, will continue to stay with the present shareholders of Mid-Day Multimedia Limited.
The valuation of the two businesses has been done by Ernst and Young Private Limited and swap ratio as per their report dated May 5th, 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).
Commenting upon the transaction, Mr. Mahendra Mohan Gupta, Chairman and Managing Director, JPL said,
“MID-DAY and INQUILAB both are strong brands enjoying unique market position, which will be further strengthened. The proposed merger offers us numerous opportunities to increase our market share in our existing markets and to enter into the new markets.
MID-DAY, being a compact newspaper, complements with our compact brands namely I-Next and City Plus, which is also circulated in Mumbai. Gujrati MID-DAY and Inquilab, being Indian language newspapers, fit well in our inorganic growth strategy and will enable us to add to our offerings to our customers.
I am confident that with the present professional and experienced management team supported by Mr. Tarique Ansari, who is going to continue as director on the Board of MIL, we will be able to not only improve the existing profits of MML’s PRINT BUSINESS but also add value to the businesses of both the companies for the benefit of all the stakeholders.”
Singhi Advisors were advisors to the transaction.
About JPL
Jagran Prakashan Limited is a leading media house of India which publishes Dainik Jagran, India's largest read daily with a total readership of 54.2 million readers (IRS 2010 Q1). It was also voted the most credible and trusted newspaper in India, according to a survey commissioned by BBC-Reuters and conducted by Globscan, in 10 of the world's leading countries, including the US, UK, Germany and Russia.
Established in 1942, Dainik Jagran was the brainchild of the Indian Freedom fighter, Late Shri Puran Chandra Gupta. Dainik Jagran is now published in 37 editions across 11 states from 30 different facilities. The company also launched I-next, the first ever bilingual newspaper in the country in December, 2006 now published from 4 states in 12 editions and also has an English Infotainment paper City Plus now published in 24 editions. The Company publishes monthly magazines Sakhi targeted at women and Josh targeted at career oriented youth. The group also publishes Jagran Varshiki, an annual general knowledge digest and various national and state statistical compilations.
Jagran Engage provides specialized 'Out of Home' advertising services with a Pan-India footprint. Jagran Solutions provides below the line activities like promotional marketing, event management and on ground activities throughout the country. The company has Hindi news portal in association with Yahoo India, http://in.jagran.yahoo.com and the company’s division J9 provides IVR/AVR/SMS services through its short code service 57272, besides initiatives in digital businesses.
As a responsible corporate citizen, JPL supports a specifically dedicated group’s outfit of Shri Puran Chandra Gupta Smarak Trust, Pehel, to discharge its social responsibilities and provide social services such as organizing workshops/seminars to voice different social issues, health camps/roadshows for creating awareness on the social concerns and helping underprivileged masses. Pehel has been working with various national and international organizations such as World Bank on various projects to effectively discharge the responsibilities entrusted by the company. The company has also been assisting trusts and societies dedicated to the cause of promoting education, culture, healthcare, etc.
About MID-DAY
The newspaper publishing business of the Mid-Day Group was launched during the freedom movement by Abdul Hamid Ansari with the Daily Inquilab in 1938. With the launch of Sportsweek in 1968 and Mid-Day in 1979, the group strengthened its position as a significant player in the Mumbai newspaper industry. Subsequent launches of Sunday Mid-Day, Gujrati Mid-Day and 3 new editions of Mid-Day in Pune, Bangalore and Delhi have poised the group to make significant inroads as a national publisher. Recently, MML has transferred its publishing business to its wholly owned subsidiary company Mid-Day Infomedia Ltd (MIL). The Midday Group also has Radio stations in 7 key cities of India, through its subsidiary Radio Mid-Day Ltd.
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