Shop CJ to merge with Homeshop18
28 Sept 2017 10:18 PM IST
Mumbai: Homeshop18, subsidiary of Mukesh Ambani-owned Network18 Media and Investments and Shop CJ Network on Thursday said they will be merging the businesses of both entities.
"The Board of Directors of TV18 Home Shopping Network (Homeshop18) and Shop CJ Network approved entering into a definitive agreement to combine the businesses of both entities," Network18 said in a statement.
The merger shall be effected by way of a share-swap and the shareholders of Shop CJ shall be issued 25 per cent equity in HomeShop18, making Shop CJ a subsidiary of HomeShop18.
Post the transaction, HomeShop18 shall cease to be a subsidiary of Network18 Media & Investments, however, Network18 shall continue to be the largest shareholder in the combined entity.
"The resultant benefits of scale shall better the growth prospects for the combined entity, allowing it to improve its standing in the TV home-shopping landscape and compete better with the challenge from e-commerce players," it said.
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