Anil Ambani’s Reliance Group will sell its FM radio business by divesting its entire stake in BIG FM Radio to Jagran Prakashan-owned Music Broadcast Ltd (MBL) for an estimated value of Rs 1,200 crore, an official statement Monday said.
Reliance Capital and Reliance Land (a part of Reliance Capital Group) will divest their entire equity stake in Reliance Broadcast Network Ltd (RBNL) to Music Broadcast Ltd (MBL).
The move would help in reducing the loan burden of the Reliance group firms, it added.
“This transaction is part of our overall strategy to reduce exposure in non-core businesses and will reduce our debt by an estimated Rs 1,200 crore,” the statement Reliance Capital CFO Amit Bapna said in a statement.
RBNL operates under the brand name BIG FM Radio network with 58 stations across the country. MBL will initially acquire a 24 per cent equity stake of RBNL by way of a preferential allotment for Rs 202 crore.
Thereafter, subject to the receipt of all regulatory approvals, MBL will acquire all of the remaining equity stake held by Reliance Capital and Reliance Land in RBNL at a total enterprise value of Rs 1,050 crore.