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Latha Venkatraman
Virendra Verma

Mumbai , April 13

BENNETT, Coleman and Co, publishers and owners of the Times of India, has diluted its holding in Mid-Day Multimedia after Indian Express acquired 10 per cent stake in the media company.

Banhem Financial & Investment Consultants Ltd, a group company of Bennett, Coleman and Co, has sold a total of 6.96 per cent of its holding in Mid-Day in the open market following the Indian Express deal. Currently, Bennett, Coleman and Co's holding in Mid-Day is 4.95 per cent.

On March 3, 2005 Indian Express acquired 10 per cent stake in Mid-Day from the Ansari family, promoters of the media company.

When contacted, an official at Mid-Day said that the Times group has been reducing its holding through open market sales.

The rationale for exiting was possibly because it did not want to hold on to a minority stake post Indian Express's entry as a stakeholder.

According to the filings made with the stock exchanges, Banhem sold 13.88 lakh shares (3.26 per cent of the company's equity) on March 4, just after Indian Express acquired 10 per cent stake.

Banhem again sold 15.76 lakh shares (3.70 per cent) in the company this month.

Bennett, Coleman and Co's holding in Mid-Day was through Banhem and Dharmayug Investments.

In November last year, Banhem had acquired 32.86 lakh shares (7.72 per cent stake) in Mid-Day through open market purchases.

The sale of these shares has brought good returns to Banhem as the shares bought by it in November last year were purchased around Rs 33 and the average sale price is more than Rs 75.

Currently, the Mid-Day stock is trading at Rs 74. However, the stock price has come down from its high of Rs 93 touched on March 8 when Indian Express acquired the stake.

However, after the acquisition the stock price fell immediately as the price of acquisition was much lower than the market price.

Mid-Day is in the process of launching the newspaper in two other cities but officials at the company refused to give further details.

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