Mumbai : The merger deal for seven Oye FM radio stations owned by TV Today Network Ltd with Radio Mirchi owned by ENIL (Entertainment Network India Limited) has run to rough weather as the approval for the merger has been denied by the Ministry of Information and Broadcasting.
According to I&B Ministry the decision on refusal of merger of Oye FM with Radio Mirchi has been made on the grounds that the proposed sale is not “in conformity” with the FM Radio guidelines.
Speaking on the development ENIL MD and CEO Prashant Panday said, “We have options that we will discuss internally and with TVTNL, and then decide on a future course of action.”
The network informed BSE that in “respect to the application made to MIB, Government of India seeking its approval regarding the sale of Radio FM Business [Seven Radio Stations] to Entertainment Network (India) Limited, MIB by their order dated May 01, 2015, received on May 08, 2015, has declined its approval on the grounds that the proposal sale is not in conformity with the FM Radio Guidelines. However the company reserves its right to seek appropriate legal remedy, as and when required.”
When asked to comment on MIB’s decision, Panday said, “We disagree with MIB’s views.”
Expressing his disappointment with the decision, he added, “Despite all talks of making it easy to do business, the fact is that it is very difficult in reality. That is disappointing. However, we do have options like I mentioned.”
The committee meeting of TVTNL senior officials, which was held on 8th May, 2015, took note of the said order, stated BSE. It further stated, “Keeping in view the said order, the Committee has considered and approved the amendment letter to the Non binding Memorandum of Understanding to be signed between the Company and Entertainment Network (India) Limited.”
In April, it approached the High Court with regards to the delay by the Ministry of Information and Broadcasting’s (MIB) approval to merger its seven radio stations of Oye FM with Radio Mirchi owned by Entertainment Network (India) Limited (ENIL).