MUMBAI: HT Media Ltd (HTML) shareholders will meet on 28 January to take forward the proposal for demerger of the radio business from subsidiary company HT Music and Entertainment (HTME).
HTME’s FM radio stations operate under the Fever FM brand.
The company said that the proposal is to write-off part of the share capital of the demerged (HTME) company which has been eroded due to accumulate losses and utilization of securities premium of resulting company (HTML) for the said purpose and also to the demerger of the radio business of HTME and transfer vesting thereof into the resulting company.
Related Post
“Radio business of the demerged company has incurred substantial losses since inception on account of low advertisement revenue, high brand building cost, delay in availability of common infrastructure resulting in substantial investment in transmission facilities for Delhi and Mumbai FM Radio stations… All of which have resulted in erosion of its share capital,” HT Media said.
The company told BSE today that as per the Delhi High Court order, separate meetings of the equity shareholders, secured and unsecured creditors, will be held on 28 January. After the meeting only, the shareholders will consider, and, if thought fit, approve with or without modification, a scheme of arrangement and restructuring between HTML and HTME.
Also, the company is expecting that as the radio business is in consolidation and expansion mode, it is likely to continue incurring losses in near term.
Earlier on 28 November HTML board had approved the demerger proposal. The demerger was subject to necessary approvals and sanction of the concerned authorities and Delhi High Court.
