Reliance to sell its stake in Big FM Radio

Guwahati, May 29, 2019:

Anil Ambani owned Reliance Capital Ltd and Reliance Land (a part of the Reliance Capital Group) will soon sell their stakes in Big FM Radio.

Radio City, a part of Jagran Prakashan Ltd Group Company Music Broadcast Limited (MBL), will soon take over 40 stations of Reliance 92.7 Big FM.

Big 92.7 FM Radio network operates under Reliance Broadcast Network Ltd (RBNL) with 58 stations across India.

The 18 remaining stations will have to be sold separately in a second leg of the transaction. This is because Radio City is already present in those cities and there will be an overlap. The Reliance group is expecting to earn 150 crore from these remaining 18 stations.

Initially, 24 percent equity stake of RBNL will be acquired by MBL by way of a preferential allotment for a total consideration of Rs. 202 crore.

As per reports, the transaction is part of the overall strategy to reduce exposure in non-core businesses and will reduce Reliance Capital’s debt by an estimated Rs.1,200 crore.

According to Amit Bapna, CFO, Reliance Capital, Reliance capitals debt to be reduced by approximately Rs 12,000 crore with the recent announcement of stake sale in Reliance Nippon Asset Management and other ongoing monetization plans.

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