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Journalism of Courage
MUMBAI, SEPT 22: Zee Telefilms is planning to hive off its education division into a wholly-owned subsidiary and get shares as compensation, the firm said in a notice to its shareholders.
Zee said the transfer, subject to approvals, would enable the business to grow faster and achieve significant revenues by focusing on the business. "In order to achieve the business objectives of the education division, it is proposed that this division may be transferred to a separate wholly-owned subsidiary of the company as going concern," the firm said.
It said the value of the transaction will be determined by taking the depreciated value of its fixed assets net working capital. "The new company will pay the purchase consideration by issuing equity shares of an amount, equivalent to the amount calculated as above," the firm said.
"The business approach of Zee Telefilms is more focussed on entertainment, information, technology and advertisement business," it said.
Zee Telefilms makes entertainment films for the group’s satellite television network while the division imparts education through television, learning centres and the Internet.
The company said after a planned merger of Zee Multimedia Worldwide Ltd with Zee Telefilms, the equity holding of the promoters in the company would rise from about 50 per cent to about 76 per cent while the holding of foreign institutional investors would decrease from 28.47 per cent to 13.55 per cent.
