MUMBAI: Continuing with its restructuring, the ZeeL board has approved the transfer of its digital publishing business to Rapidcube Technologies, a subsidiary of group company Zee Media.
The transaction values the business at Rs 63.77 crores, and Rapidcube will pay the amount by transferring its shares of Rs 10 each to ZeeL. The former’s share capital at the time of writing is Rs 10 lakh, which is being enhanced to enable the transaction.
"The date of completion of transfer of the digital publishing business division to Rapidcube would depend upon receipt of relevant approvals and completion of conditions precedent (as identified in the agreement for transfer of the business)," the company said in a BSE filing.
ZeeL says the transfer of its digital publishing business will allow it to leverage the opportunities in the space through its equity holding in Rapidcube, which was incorporated in end October 2020.
The digital business clocked up revenues of Rs 32.8 crore in FY 2019-20, contributing 0.5 per cent to ZeeL’s standalone revenue. It also contributed Rs 62.2 crore as net worth to ZeeL, which is 0.8 per cent of the latter’s net worth.
ZeeL’s digital publishing business includes websites/apps for 20 brands across 12 languages in various genres like news, entertainment, technology, cricket, health and lifestyle, and consists of flagship brands like ZeeNews.com, WIONews.com, DNAIndia.com, ZeeBusiness.in, India.com, Bollywoodlife.com, BGR.in, TheHealthsite.com, and CricketCountry.com.
