 "Zee Media extends rally as board approves acquisition of radio biz of RBNL")
Zee Media Corporation (ZMCL) has moved higher by 7% to Rs 36.45, extending its Wednesday’s 10% surge on BSE after the company announced that the board approved acquisition of 49% stake in 92.7 BIG FM, the radio broadcasting business of Reliance Broadcast Network Limited (RBNL).
RBNL runs the largest network of FM radio channels in India – 45 operational licenses (issued under Phase II and migrated to Phase III) and 14 new licenses (issued under Phase III).
Under the transaction, RBNL will transfer the 45 operational FM channels and 14 new non-operational channels into two special purpose vehicles (SPV) Vrushvik Entertainment Pvt Ltd and Azalia Media Services Pvt Ltd, respectively.
ZMCL will acquire 49% stake in each SPV. Both Zee and Reliance group will also have a call/put option for the balance 51% stake in both the SPVs after the stipulated lock-in period.
The acquisition is subject to regulatory approvals of Ministry of Information and Broadcasting and No-objection from lenders of RBNL. The transaction is expected to close in the first half of CY2017.
At 11:05 am, the stock was up 5% at Rs 35.90 on BSE, as compared to 0.48% decline in the S&P BSE Sensex. A combined 2.79 million shares changed hands on the counter on BSE and NSE so far.
RBNL runs the largest network of FM radio channels in India – 45 operational licenses (issued under Phase II and migrated to Phase III) and 14 new licenses (issued under Phase III).
Under the transaction, RBNL will transfer the 45 operational FM channels and 14 new non-operational channels into two special purpose vehicles (SPV) Vrushvik Entertainment Pvt Ltd and Azalia Media Services Pvt Ltd, respectively.
ZMCL will acquire 49% stake in each SPV. Both Zee and Reliance group will also have a call/put option for the balance 51% stake in both the SPVs after the stipulated lock-in period.
The acquisition is subject to regulatory approvals of Ministry of Information and Broadcasting and No-objection from lenders of RBNL. The transaction is expected to close in the first half of CY2017.
At 11:05 am, the stock was up 5% at Rs 35.90 on BSE, as compared to 0.48% decline in the S&P BSE Sensex. A combined 2.79 million shares changed hands on the counter on BSE and NSE so far.
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