Deals

The newspaper business will see some significant challenges in the years to come. Scale and access to resources will be critical factors in the success of any newspaper company. By aligning with Jagran we will be able to pool resources with the largest newspaper group in the country to grow profitably and deliver better value to shareholders.
Tarique Ansari, Managing Director , Mid-Day Multimedia Ltd

Completion Date
May 2010

Transaction Type
Management Buyout

Transaction Value
$43 million

Lead Partner
Gopal Agrawal
Telephone + 91 22 6634 6666

Background
MML’s publication business which is run through its subsidiary Mid-day Infomedia comprises the iconic afternoon newspaper Mid-Day (published from Mumbai, Pune, Bangalore and Delhi), Sunday Mid-Day, Gujarati Mid-Day and the largest read Urdu newspaper in the country, The Inquilab, and the rapidly growing website mid-day.com.

Jagran Prakashan (JPL) is India’s leading media and communications group, with the group’s flagship brand, Dainik Jagran, being the most widely read newspaper in the country with a total readership of 54.2 million.

As part of the Scheme of Arrangement which has been passed by the Board of Directors of both MML and JPL; the publishing business of Mid-Day Multimedia Ltd would be demerged and transferred to JPL. For the Demerged publication business, the MML Shareholder will receive 2 shares of JPL for every 7 shares held as on the Record Date. The current management of Mid-Day Infomedia under leadership of Mr. Tarique Ansari and Mr. Manajit Ghoshal would continue to run the publication business and grow the business to the next level, subject to overall control and superintendence of Board of Directors comprising of majority of JPL’s nominees. The Ansari family will hold investment in the publishing business post completion of demerger.

What Difference Did We Make?
Owners of Mid-day had appointed Singhi Advisors as Exclusive Financial Advisor to scout a strategic investor for the company who could take the business to the next level, in a competitive market.

During this association, Singhi Advisors worked closely with the management of the company while understanding there business and growth objectives. And zeroed on Jagran Prakashan (JPL) (India's largest newspaper) who wanted to enter Mumbai market and was the right fit as it understand the newsprint space pretty well.

We also:
- Formulated the most tax efficient structure possible for the Mid-day & at the same time providing the liquidity to the owner of Mid-day
- 100% Cash less deal to the acquirer (JPL)