Hyderabad, Sept. 5
DECCAN Chronicle Holdings Ltd (DCHL), the publishers of Deccan Chronicle, on Monday approved the acquisition of South-based retail chain, Odyssey India Ltd (Odyssey) for Rs 61.2 crore, in a cash deal.
The company's board intimated the stock exchanges after the approval of the deal. DCHL will acquire 100 per cent equity of Odyssey comprising 1,15,14,140 shares with face value of Re 1 for Rs 61.2 crore.
The Chairman of DCHL, Mr T. Venkattram Reddy, in a statement said: "Odyssey's acquisition is a strategic move which brings synergies at two levels.
It not only brings us closer to consumers in relevant markets who are our readers but also brings us closer to large FMCG companies who are big advertisers. Our newspaper, Deccan Chronicle, one of the largest English dailies in South India, is a bridge between these consumers and advertisers.''
The Managing Director of Odyssey, Mr T.S. Ashwin, said: "Odyssey is rapidly moving from smaller stores. While the current management will continue to run the business, DCHL will give Odyssey much desired scale, bandwidth and other benefits of being a listed entity."
Deccan Chronicle Holdings is acquiring Odyssey at 0.68 times its financial year 2007 revenue, which is expected to be Rs 90 crore.
For FY 2008, Odyssey is expected to post revenue of Rs 150 crore. The company would be merged into DCHL and will become its division.
Odyssey, a growing leisure retail chain, is engaged in sale of books, music, toys, greeting cards and FMCG products.