Financial Daily from THE HINDU group of publications
Tuesday, May 24, 2005
Financial Daily from THE HINDU group of publications Tuesday, May 24, 2005 |
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Corporate
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Mergers & Acquisitions Deccan Chronicle buys 67 pc in Asian Age Our Bureau
Mumbai , May 23 DECCAN Chronicle Holdings Ltd today announced that it has acquired 67 per cent stake in Asian Age Holdings, publishers of The Asian Age, for Rs 17.10 crore, taking its total holding to 90 per cent. "This acquisition will give us a national presence. Besides, it is a good brand," said Mr P.K. Iyer, Executive Director, Deccan Chronicle Holdings Ltd. Deccan Chronicle, which already held a 23 per cent stake in Asian Age, bought out 26 per cent from Mr M.J. Akbar, 23 per cent from United Breweries, 15 per cent from Zee Telefilms, and three per cent from its promoter, Mr T. Venkatram Reddy. Mr Akbar will continue to be editor of the newspaper. Through the acquisition, Deccan Chronicle Holdings gets a presence in the advertising markets of Mumbai, Delhi, Kolkata, Bangalore and London. The revenue and the brand ownership will be transferred to Deccan Chronicle. The Asian Age brand is expected to contribute Rs 25-30 crore in the current fiscal and Rs 75-100 crore in the next. Deccan Chronicle has reported a 46 per cent increase in net profit in the fourth quarter to Rs 5.88 crore; net sales grew by 48 per cent to Rs 47.14 crore. The quarter saw operating margin rise to 35.45 per cent from 24.08 per cent. The board has recommended a dividend of 10 per cent. For the full year, the company reported 83 per cent rise in net profit at Rs 32 crore and 41.7 per cent growth in sales to Rs 165.64 crore. Advertising revenue constituted 90 per cent of net sales against 85 per cent earlier. The company expects to turn in 100 per cent growth in topline in the current year to Rs 280-300 crore. Profit after tax is seen growing at 75 per cent over the previous year.
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