Tuesday, March 9, 2010

Independent News Cuts Jagran Prakashan Stake

UK-based media house Independent News & Media (INM) has struck gold in its four-year-old investment in local publishing group Jagran Prakashan. It sold 7.5% or over half of its remaining holding in the company for Rs 255 crore to a bunch of domestic and foreign funds.



The move is believed to be part of a strategy to exit non-core assets in order to bring down bank debt.



This is the second tranche of sale by INM, which owns loss-making Independent newspaper in the UK. It held as much as 26% before the IPO of the company in 2006. INM sold 7.3% last year which brings down its holding to around 6%.



As per VCCircle calculations, the average cost of acquisition for INM works out to around Rs 24 per share in Jagran which means it is sitting on unrealised gains of 5x on its remaining holdings. Jagran is trading at Rs 120 levels.



Till date, INM has encashed around Rs 410 crore against the initial investment of around Rs 150 crore. The 26% stake purchased was diluted to around 20% post IPO and dropped to around 13.5% last year.
News From: http://www.Time2timeNews.com

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