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Tatas sell Infomedia to ICICI Venture

Mumbai, Sept. 1: The Tata group today announced its exit from Tata Infomedia Ltd, publisher of Tata Yellow Pages and a host of other magazines. The profitable publishing business has been sold to ICICI Venture Funds Management Company.

ICICI Venture has acquired the Tata group’s 50 per cent stake in Tata Infomedia for Rs 100.70 crore in a cash deal at a rate of Rs 176 per share. It will make an open offer to acquire 20 per cent of the company’s public shares.

“We have acquired around 5.7 million shares of Tata Infomedia and with an open offer for public shareholders, the total investment will increase to Rs 141 crore,” Renuka Ramnath, managing director and chief executive officer of ICICI Venture, said.

Ramnath and finance director of Tata Sons Ishaat Hussain signed an agreement here today. DSP Merrill Lynch was the investment banker and CZB & Partners was the legal adviser of the Tatas.

With this deal, the Tatas have completely exited from publishing business. Earlier, the group had sold its rights in Readers’ Digest to Living Media.

The open offer price, as per the Securities and Exchange Board of India (Sebi) guidelines, will be around Rs 176 per share.

Advantage Fund, a Rs 750-crore fund raised by ICICI Venture from institutions and banks in the country, would fund the investment through a special purpose vehicle, ICICI e-Payments Ltd, Ramnath said.

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