Mumbai, May 27 (IANS) The Anil Ambani-led Reliance Capital Ltd and group company Reliance Land have decided to divest their entire stake in Reliance Broadcast Network Ltd (RBNL) operating BIG FM Radio to Music Broadcast Ltd (MBL), Reliance Capital said.
In a statement issued here, Reliance Capital said RBNL under BIG FM Radio network operates 58 stations across India.
As per the deal, MBL – part of media conglomerate Jagran Prakshan Group – will initially acquire a 24 per cent equity stake of RBNL by way of a preferential allotment for a total consideration of Rs 202 crore.
On receipt of all regulatory approvals, MBL will acquire all of the remaining equity stake held by Reliance Capital and Reliance Land in RBNL at a total enterprise value of Rs 1,050 crore.
“In addition, Reliance Capital will receive an estimated Rs 150 crore from the disposal of other assets of RBNL which do not form part of the transaction with MBL, in accordance with the regulations,” the statement added.
In aggregate, the transaction will reduce Reliance Capital’s outstanding debt by an estimated Rs 1,200 crore.
“We are delighted to announce the asset monetization transaction with Music Broadcast Ltd, a leading FM Radio broadcaster. This transaction is part of our overall strategy to reduce exposure in non-core businesses and will reduce Reliance Capital’s debt by an estimated Rs 1,200 crore,” Amit Bapna, CFO, Reliance Capital, was quoted as saying in the statement.