Acquisition of Business on Slump Sale Basis
Price
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JOJO Limited (formerly Madhuveer Com 18 Network Limited) is seeking shareholder approval via postal ballot for acquiring its Media and Entertainment Production Business (Business Vertical-1 including JOJO Platform) from Navkar Events Private Limited through a slump sale as a going concern. Navkar Events is already a wholly owned subsidiary of the Company (acquired in November 2023). The lump sum consideration is Rs 1,00,000, determined by an independent IBBI registered valuer. A significant portion of consideration will be adjusted against outstanding loans extended by the Company to the subsidiary, resulting in no material cash outflow at consolidated level. The transaction qualifies as a Material Related Party Transaction requiring special resolution approval with related parties abstaining from voting. The rationale is to consolidate the JOJO digital platform under the listed entity, align brand identity with actual business ownership, and eliminate structural inefficiencies from operating a core asset through a subsidiary.
This acquisition consolidates the company's core digital platform directly under the listed entity, which should improve operational efficiency, simplify compliance, and potentially enhance the company's market valuation by aligning it with the high-growth digital media/OTT segment. Shareholders should note related parties are excluded from voting on this resolution.