Music Broadcast announced that the company has entered into definitive binding agreement for the acquisition of Reliance Broadcast Network.
The company will acquire 24% of the equity share capital of RBNL on or before 31 July 2019 and (subject to receipt of the regulatory approval from the Ministry of Information and Broadcasting) the acquisition of the entire equity stake of promoters in RBNL (by MBL) will happen after 31 March 2020, i.e. post the expiry of the lock-in period as prescribed under the applicable law.
The transaction is a all cash deal with initial acquisition of 24% equity share capital in RBNL by way of a preferential allotment for a total consideration of Rs. 202 crores and thereafter subject to the receipt of all regulatory approvals, MBL will acquire all of the remaining 75.71% equity stake held by the promoters of RBNL for a consideration which will be derived from a total enterprise value of Rs. 1,050 crores (after making all necessary adjustments, using EBIDTA calculated on the basis of audited accounts for the year ended 31 March 2019).
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