MAM
News Corp board gives the nod regarding US reincorporation
MUMBAI: Media conglomerate News Corporation has announced that a special committee of non-executive directors and the full board of directors have recommended the proposed reorganisation of the company.
It was in April that the company’s CEO Rupert Murdoch had announced plans to shift its incorporation to the US from Australia.
News Corp expects the reorganisation to be completed by the end of the year. As reported earlier by Indiantelevision.com the move to reincorporate in the US makes sense as 75 per cent of News Corp’s revenues and profits are from US based businesses like Fox and now Directv.
However the proposed move will not result in a change in strategy. The reorganisation must now be approved by News Corp’s shareholders.
As part of the plan, the board has approved of a deal under which News Corp. would acquire from the Murdoch family a holding company that owns News Corp shares and a 58 per cent stake in Australian newspaper publisher Queensland Press. News Corp already owns the rest of Queensland Press. This will result in the full consolidation of the Queensland Press publishing business,
The board, adviser bank UBS and the Murdoch family agreed to value the Queensland Press publishing business at 2.45 billion Australian dollars ($1.75 billion), after deducting about 500 million Australian dollars for debt.
After the deals are done, the Murdoch Interests, which are controlled by News Corp. Chief Executive Rupert Murdoch and his family, will own 29.48 percent of the voting shares of News Corp. US. This will be slightly less than the 29.87 per cent that they now own.
In a statement, the company said the deals would enhance demand for its stock and improve its performance by increasing the U.S. shareholder base and allowing the company to be included in U.S. stock indexes.
The deals will also simplify News Corp’s structure and allow external reporting consistent with its peer group.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
