Network18 Media and Investments Ltd today said it has entered into an agreement with GETIT Infoservices to divest stake in local search businesses – Yellow Pages and ASK Me for an undisclosed amount.
Network18 Group has entered into an agreement to profitably divest its local search businesses – Infomedia Yellow Pages and AskMe, Network18 said in a filing to the BSE.
"This is in line with the stated objective of divesting stakes in non-core assets to create value for the shareholders of Network18 Media and Investments and allow infusion of growth capital in these assets to propel them to the next stage," it added.
GETIT Infoservices is a digital marketing company offering a platform for local search, classifieds and deals.
Following the announcement, shares of Network18 Media and Investments were trading at Rs 32.25 apiece, up marginally from their previous close on BSE.
"The combined operations of GETIT will be referred to as Getit Infomedia and will be wholly owned by shareholders of Getit," it said.
In December last year, Network18 sold its entire stake in financial data and news terminal business NewsWire18 to private equity firm Samara Capital for Rs 90 crore.
"The divestiture of Infomedia Yellow Pages and Askme is a reflection of our commitment to profitably monetise non-core assets for the benefit of our shareholders and to also facilitate the growth of these businesses to the next level," Network18 Managing Director Raghav Bahl said.
Previously, Network18 had also sold its stake in one of the Capital18 investee companies, NetworkPlay and partially diluted its stake in digital commerce firm¿Bookmyshow.com.
AskMe allows people to search for companies, products and services online as well as on phone, while Infomedia Yellow Pages is an online local search service that helps buyers find businesses.
Network18 Media and Investments posted a consolidated net profit of Rs 6.84 crore for October-December 2012 period, after many quarters of losses.
Its consolidated revenues for the said quarter stood at Rs 697.4 crore. Of this, television and motion pictures business accounted for Rs 542 crore, while digital content & eCommerce and allied businesses