Mid-Day Multimedia board on Wednesday agreed for its merger with Jagran Prakashan in the ratio of 2:7 where each midday shareholder will get 2 shares of Jagran for 7 shares Mid-day.
The merger resulted into heavy gains for Mid-Day as its share price rose by 18 per cent during the day to close at Rs. 34. In contrast, Jagran Prakashan saw its share price fall by 3.2 per cent to Rs. 115.
“For Mid-Day this merger provides huge opportunity in the form of financial muscle of Jagran Prakashan. As the largest circulating news paper Jagran would also give its experience in news business,” said Abhijit Majumder, executive editor, Mid-Day. “Jagran will benefit from Mid-Day’s strong brand and experience in English news.”
Jagran Group has been on a lookout for expansion. In April, Blackstone group invested Rs. 250 crore in the Jagran Media Network–parent company of Jagran Prakashan and acquired a minority stake in the firm.
“Jagran Media is looking at growth and needs capital to fulfill its expansion plans,” Akhil Gupta, chairman and managing director of Blackstone Advisors India at the time of the investment, had told Hindustan Times.
Jagran Prakashan’s Dainik Jagran is published in 37 editions and more than 200 sub-editions across 11 states.