Mumbai: Private FM Radio Broadcaster, Music Broadcast Limited (MBL) has announced the acquisition of the radio division of Ananda Offset Private Limited by way of slump sale. MBL board today approved the deal.
The transaction allows MBL to enter into the Kolkata market which is one of the top 5 markets in the country and Focus tountap the large potential from national advertisers. Friends FM is an established brand since the last 10 years. MBL has had a sales alliance with AOPL since the last 5 years. The Transaction is expected to be value accretive and help in improving the EBITDA margins.
Under the terms of the agreement MBL will acquire 100% ownership of the radio division of AOPL, subject to MIB approval. The transaction is by way of slump sale on a going concern basis. The transaction is subject to MIB Approvals
AOPL has posted Rs 10.59 Crore revenue in FY16 and Rs 10.8 Crore in FY17 with a margin of 15% and 18% respectively.
Commenting on the results Ms. Apurva Purohit, Director said: “We are happy to announce that the board today approved the acquisition of the radio division of Ananda Offset Private Limited (AOPL). This acquisition gives us access in the Kolkata market which is considered as one of the top 5 markets in the country which was earlier not present in our bouquet. I am very confident that the coming together of strong and established brand like ‘Friends FM’, the high quality local team it has and our national footprint across all key cities in India will give us several opportunities to create EPS accretive synergies.
AOPL runs Radio and Offset business divisions. Its Radio Division holds a channel licence in Kolkata under the brand name “Friends 91.9 FM” which it had acquired under the Phase II regime and is operational since 2007. The Offset Division is carrying out printing of daily newspapers, periodicals, news magazines and other periodicals in heat set web offset printing machines