RCap says RBNL to divest 49% stake in 92.7 BigFM

NEW DELHI: Reliance Capital, a part of Anil Ambani-led Reliance Group, on Wednesday announced value unlocking in the radio and TV businesses that will reduce its debt by approximately Rs 1,900 crore ($283 million) upon completion of the transactions.

These transactions form part of Reliance Capital’s stated strategy of reducing leverage and exposure to the non-core media and entertainment business, Reliance Capital said in a release.

Reliance Broadcast Network Limited (RBNL), the largest operator of FM channels in India, has signed definitive and binding agreements with Zee Media Corporation Limited (ZMCL) to sell 49 per cent stake in its radio broadcast business.

RBNL runs the largest network of FM radio channels in India under the brand name of 92.7 Big FM that reaches out to 45 cities, 1,200 towns and over 200 million people.

Simultaneously, Zee Entertainment Enterprises Ltd (ZEEL), a separate entity under Zee Group, will acquire 100 per cent stake in the Group's General Entertainment TV business. The transaction pegs the combined Enterprise value of radio and TV business at approximately Rs 1,900 crore.

The entire proceeds from the stake sale would be used to reduce Reliance Capital’s debt upon completion of the transactions.

Both these transactions have been approved by the boards of respective companies and are expected to be completed by next year, subject to applicable approvals.