Dutch media group VNU buys Ashok Advani's stake in ORG-MARG
org-marg.com
VNU set to buy Advani out of ORG-Marg
(Thursday, October 14, 1999-)
Anjan Mitra in New Delhi-BS
The $2.8 billion Dutch media and information conglomerate VNU is buying out Business India group chairman Ashok Advani?s 50 per cent holding in market research company ORG-Marg for $22 million.
After the buyout, VNU's holding in ORG-Marg will go up from 30 per cent to about 80 per cent. Fifteen per cent of the remaining shareholding will remain with K M S Titoo Ahluwalia. ORG-Marg Employees Welfare Trust holds about 4.5 per cent equity.
ORG-Marg sources said the buyout agreement was signed earlier this week.
However, Advani will retain till March 2000 the option to buy back his shares. He has sought the Reserve Bank of India's permission in this regard, the sources said.
A fax sent to Advani in Mumbai elicited no response. Ahluwalia, too, was unavailable for comments.
In August, the Foreign Investment Promotion Board had cleared a VNU proposal to acquire 11,355 shares of Rs 100 each from Ahluwalia, representing 5 per cent of the shareholding in ORG-Marg. Initially, Ahluwalia had 30 per cent stake in the company.
The Dutch company has made a bid for Nielsen Media Research abroad to increase its market share. ORG-Marg is looking at a pan-Asian role and has joint ventures in Bangladesh, Nepal and Sri Lanka. It is also looking at life beyond market research in areas where VNU specialises.
In 1996, VNU had acquired 26 per cent in ORG-Marg. At that point of time, the Business India group needed money to fund BiTV, its television venture. Ever since, VNU has been gradually increasing its stake in ORG-Marg.
VNU, a public company listed on the Amsterdam Stock Exchange, has diversified interests in consumer and music magazines, market research, data bases and exploitation of commercial broadcasting.
It has alliances and business interests in countries like Belgium, Italy, France, Germany, the US and UK. It also has substantial equity stakes in US magazine, Billboard, and in two European television stations. |
