Mumbai: Anil Ambani-owned Reliance Broadcast Network (RBN) has signed a two-part deal with Music Broadcast Ltd (MBL), a subsidiary of Jagran Prakashan, to sell its private FM brand Big FM for Rs 1,050 crore. With this deal MBL’s stations count will increase to 79 across 69 cities in India.
While confirming the deal between MBL and RBNL, Apurva Purohit, director, MBL stated that Big FM will continue to operate independently as MBL has no plans to rebrand it after the completion of acquisition process.
“Big, we believe, is a powerful and leader brand in its own right and has a high recall value. It will continue to run independently. We believe Radio City’s TG and genre and Big FM’s are different and complementary to each other,” Purohit said.
As per the deal Music Broadcast Ltd (MBL) owned Radio City that operates 39 stations across India will acquire 40 Big FM stations out of 58 operational stations in accordance with the grant of permission agreement (GOPA) of the Information and Broadcasting ministry.
MBL will initially acquire 24% in RBN, the terms of which are being finalised, by way of a preferential allotment for Rs 202 crore. Further, on receipt of all regulatory approval, MBL will acquire the entire stake held by the promoters of RBN.
“We have made a simple structure basis of the GOPA of the Information and Broadcasting ministry. Subject to necessary approvals, we will acquire 40 stations for entire valuation of about Rs 1,050 crore. This will make MBL the largest private FM company in India in terms of number of stations, reach and pure play radio revenues.” added Purohit.
RBNL estimates to rake in additional Rs 150 crore from the disposal of the remaining 18 channel which do not form part of the transaction with MBL.