MUMBAI: Media baron Subhash Chandra’s Zee Group is set to take the control of Anil Ambani-owned
Reliance Broadcast Network (RBN), which operates private FM brand Big FM and entertainment channels – Big Magic and Big Ganga.
Sources close to the development said the deal is expected to be announced later this week and is structured in a way that the radio business of RBN will fall under Zee Media Corporation (ZMCL), which houses the group’s 10 news channels including three national and seven regional channels. Big Magic and Big Ganga, however, will be under Zee Entertainment Enterprises (ZEE).
ET was first to report Zee Group and RBN have agreed for the acquisition of the latter at a valuation of Rs 1,872 crore and the structure was being worked out to comply with government regulations. “This acquisition took more time than usual because of multiple regulatory hurdles. There is a three-year lock-in as per the phase III guidelines, while radio sector has a 49% foreign direct investment cap. Radio will, thus, sit in ZMCL, which has a similar FDI policy,” said the source.
As a precursor to the deal, ZMCL is in process of demerging its loss-making print business into a separate company Diligent Media Corporation (DMCL). Post demerger, all print media business will be consolidated under DMCL and listed on bourses separately to will help ZMCL absorb RBN’s business on its balance-sheet. Email queries sent to ZEE and RBN did get any response till press time Sunday.
Zee Group set to take control of Reliance Broadcast Network - The Economic Times
Reliance Broadcast Network (RBN), which operates private FM brand Big FM and entertainment channels – Big Magic and Big Ganga.
Sources close to the development said the deal is expected to be announced later this week and is structured in a way that the radio business of RBN will fall under Zee Media Corporation (ZMCL), which houses the group’s 10 news channels including three national and seven regional channels. Big Magic and Big Ganga, however, will be under Zee Entertainment Enterprises (ZEE).
ET was first to report Zee Group and RBN have agreed for the acquisition of the latter at a valuation of Rs 1,872 crore and the structure was being worked out to comply with government regulations. “This acquisition took more time than usual because of multiple regulatory hurdles. There is a three-year lock-in as per the phase III guidelines, while radio sector has a 49% foreign direct investment cap. Radio will, thus, sit in ZMCL, which has a similar FDI policy,” said the source.
As a precursor to the deal, ZMCL is in process of demerging its loss-making print business into a separate company Diligent Media Corporation (DMCL). Post demerger, all print media business will be consolidated under DMCL and listed on bourses separately to will help ZMCL absorb RBN’s business on its balance-sheet. Email queries sent to ZEE and RBN did get any response till press time Sunday.
Zee Group set to take control of Reliance Broadcast Network - The Economic Times
