Mumbai : Jagran Prakashan Ltd (JPL) has informed BSE that the Board of Directors of the Company at its meeting held today (December 16, 2014), approved the entry of the Company into the FM radio industry via acquisition of Music Broadcast Private Limited (MBPL).
The acquisition is subject to regulatory approvals, including from Ministry of Information and Broadcasting, and execution of binding agreements.
As part of the acquisition, the Company is acquiring MBPL’s holding Company and fellow subsidiary that provides activations.
In this regard, the Company has issued a Press Release dated December 16, 2014 titled “Jagran Prakashan to acquire Radio City 91.1 FM.”
Radio City is owned by PE fund India Value Fund (IVF) and operates around 20 stations in seven states across India.
The acquisition is likely to be an all cash deal. JPL communications also states that the deal will be funded through internal accruals and investments.
As per IRS Q2 2012 data, Radio reaches to 158 mn people across India against 42 mn in 2007 and it is expected to reach 182 mn people in 2020. After 15 years, Industry has now become Profitable, justifying investments in the sector.
Radio revenues are estimated at INR 1,660 Cr and are expected to reach INR 3,360 Cr by 2018. Radio Industry has grown faster than traditional media (15% CAGR, 2009-2013) and is expected to grow at a CAGR of 18% (2013-2018)