By P.R. Venkat
Reliance Industries Ltd. is planning to merge its media and distribution businesses to create a single entity with combined annual revenue of 80 billion rupees (US$1.1 billion).
Under the plan, TV18 Broadcast Ltd., Hathway Cable & Datacom Ltd. and Den Networks Ltd. will merge with Network 18 Media & Investments Ltd., a joint statement by the companies said late Monday.
"The restructuring shall create value-chain integration, and render substantial economies of scale," the statement said. "The scheme shall also simplify the corporate structure of the group by reducing the number of listed entities."
The merger will be executed through a share exchange ratio that will reduce Reliance's holdings in Network 18 to 64% from 75%.
The scheme is subject to necessary approvals, the statement said.
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