Essel Group’s shareholders to discuss demerger of Zee media

To clear the demerger of its print businesses from Zee Media, the Subhash Chandra-led Essel Groupwill hold a shareholder’s meeting on March 27.

The group was directed to do so by a National Company Law Tribunal’s (NCLT) bench.

The media company announced its demerger in October last year.

“In order to enable distinct focus to the operation of both the businesses carried out by Zee Media i.e. TV news and print media, it is proposed to segregate the print media business undertaking into DMCL,” the company had said in its Bombay Stock Exchange filing on October 27.

According to the national daily, Mint, Zee Media Corp. Ltd (ZMCL)– which owns Zee News and Zee Business channels–announced that its print media venture, the English newspaper DNA (Daily News & Analysis), will be operated by a separate company, Diligent Media Corp. Ltd (DMCL).

The DMCL will also include the company’s subsidiaries Mediavest and Pri-Media. Maurya TV, which operates Zee Purvaiya, a regional news channel, will become a part of Zee Media.

“There are different regulations that govern television and print news media. By looking at the two media verticals independently, one can better structure businesses to scale up, with needed efficiency,” Priyanka Chaudhary, director, Grant Thornton India told Business Standard.

Currently, 49 per cent foreign direct investment (FDI) is allowed in business of broadcasting news and current affairs channels. The upper cap for FDI in businesses involved with publishing newspapers is only 26 per cent.