Anil Ambani Group sells 2 TV channels, 59 FM stations to Zee

92-fmSubash Chandra’s Zee Group is buying the general entertainment channels and FM radio business of the Anil Ambani group.

Because of lock-in provisions, the acquisition of 59 FM radio licenses will be done in two stages.

The FM channels are being broadcast under the brand “92.7 BIG FM”, reaching to 45 cities, 1200 towns and over 200 million people.

It reaches out to around 43 million listeners per week and engages with a large number of national and local advertisers.

Reliance Broadcast Network Limited shall be transferring the 45 operational and 14 new licenses into two SPVs respectively along with the assets and liabilities. Zee Media Corp — the news wing of the Zee group — shall acquire 49% stake in each of these two special purpose vehicle.

Zee Media will also have the right to buy the remaining 51% stake after the lock-in provisions expire.

As per government of India regulations, at least 51% shareholding needs to be held by the permission holder for a minimum period of 3 years from the date the channels were operationalized.

“The lock-in period for the 45 operational licenses shall expire on 31st March 2018, whilst the lock-in period for the 14 licenses shall expire after the expiry of 3 years from the day all 14 licenses shall have become operational, which is expected to be around March 2020,” Zee Media said.

Rajiv Singh, COO, ZMCL said “We are pleased to announce this acquisition which shall not only be complementary to our current business but accelerate its growth too. We are currently running successfully a bouquet of 11 news and current affair channels and with the addition of 59 radio licenses, we will be reaching out to a much increased audience base and will keep them engaged on different media platforms. This acquisition shall bring about the desired business diversity and will help in achieving the sound financial objectives at an accelerated pace. We are confident that this investment will enhance value for all stakeholders and looking forward towards this exciting journey to take the company to the next level.”

Sam Ghosh, ED and Group CEO, Reliance Capital said, “We are happy to bring in Zee Media as our partner in the Radio business. This transaction is part of our strategy to reduce exposure in non-core businesses and work towards further reducing debt under Reliance Capital”.

The transaction is expected to close in the first half of CY2017.

92.7 BIG FM, launched in 2006, is India’s largest and No.1 radio network spanning 45 markets. With an increased presence of 59 stations with newly acquired frequencies in key states of Maharashtra, Uttar Pradesh, Bihar and Northeast India, the radio network consolidates its position to be the largest in the country.

TV CHANNELS

The Zee Group is also buying two entertainment channels from the Anil Ambani Group (Reliance Capital.)

These will be acquired via Zee Entertainment Enterprises.

The TV Broadcasting business of Reliance Group Entities currently comprises two operational general entertainment channels — BIG Magic and BIG Ganga — and 4 other TV licenses.

BIG Magic is a Comedy channel catering to Hindi Speaking Markets. BIG Ganga is a leading Bhojpuri entertainment channel catering to audiences in Bihar, Jharkhand and Purvanchal.

The channels are available on all major MSOs and DTH operators.

“The General Entertainment TV Broadcasting business undertaking along with its assets, liabilities, licenses, trademarks etc. shall get demerged from “BIG Magic Ltd”, “Reliance Big Broadcasting Private Ltd” and “Azalia Broadcast Private Ltd” into ZEEL through a court approved scheme,” the company said.

Punit Goenka, MD & CEO, ZEEL said, “We are pleased to announce this acquisition which further adds to our expanding universe of general entertainment channels. BIG Magic gives us access to comedy genre enhancing our customer offerings. BIG Ganga, a leading Bhojpuri channel syncs with our strategy of expanding into the regional markets which offers attractive growth potential. I am confident that these two channels will make the ZEE Network channels more enriching for the audience and for the Company.”

Sam Ghosh, ED and Group CEO, Reliance Capital said, “We are happy to divest 100 per cent of our general entertainment TV business to Zee Entertainment. This transaction is part of our strategy to reduce exposure in non-core businesses and work towards further reducing debt under Reliance Capital.”

The Anil Ambani group, which operates the Reliance Communications telecom operator, is in the midst of an effort to cut down debt. It is in the process of selling its tower assets and real estate. This move too is expected to help it bring its balance sheet into proper shape after a series of spectrum auctions forced the company to take on tens of thousands of crores of debt.

The transaction is expected to close in the second half of next calendar year. Acquisory Consulting LLP and KPMG are acting as financial and tax advisors to ZEEL and the fairness opinion has been provided by IDBI Capital Markets.



Tata Steel acquires Brahmani River Pellets at Rs 900 cr EV Tata Steel Limited said that it has executed definitive agreements to acquire 100% equity shares of Brahmani River Pellets Limited (BRPL) from Aryan Mining and Trading Corpn Private Limited (AMTC) and other companies in the Moorgate Industries Group (MIG).The transaction is based on an enterprise value of Rs. 900 crores plus closing adjustments and ...
Reliance Communications sells its towers to Brookfield for $1.6 bln Reliance Communications Ltd announced the signing of binding agreements with Brookfield Infrastructure for the sale of nationwide tower assets to Brookfield Infrastructure Partners LP and its institutional partners.RCOM will receive an upfront cash payment of Rs. 11,000 crore (US$ 1.6 billion).RCOM will also receive Class B non-voting shares in t...
Fitch downgrades Anil Ambani’s Reliance Communications over Aircel merger Fitch Ratings has downgraded India-based Reliance Communications Limited's long-term rating to 'B+' from 'BB-'."It is our view that Rcom's plans to demerge its wireless business into a 50:50 joint-venture and sell 51% of its tower business, Reliance Infratel Ltd (Infratel), will be negative for Rcom's creditors, even if receipts from the tower transactio...
Cipla redraws Iran plans with new agreement, to invest Rs 121 cr Cipla said its wholly owned subsidiary of the Company in Netherlands will set up a 75% joint venture with Ahran Tejarat Company for manufacturing and marketing of pharmaceutical products in Iran.An earlier agreement executed by the Company with the Iranian firm has been terminated.The total investment will be euro 16.875 million, which comes to about...
Anil Ambani’s Reliance Infra sells transmission assets to Adani Following on the heels of its announcement to sell its transmission assets to Adani Group, Reliance Infrastructure today said it has signed a share purchase agreement with Adani Transmission for the sale of 100% of its Western Region System Strengthening Scheme Transmission Assets."SPA for Parbati Koldam Transmission Company Limited (PKTCL) shall be exe...
Anil Ambani group sells Big Magic, Ganga to Zee Entertainment Zee Entertainment Enterprises said it is acquiring the General Entertainment Broadcasting Business of Reliance Big Broadcasting Private Limited, Big Magic Limited & Azalia Broadcast Private Limited, all part of Anil Ambani led Reliance Group.The TV Broadcasting business of Reliance Group Entities currently comprises two operational general entertainm...
Sorry, Reliance Jio is NOT launching DTH In what is becoming something of a routine, yet another rumor has been spread that Reliance Jio is about to start a DTH service and you will be able to get all the channels at half the price that you currently pay.According to this, 350 TV channels will be offered at Rs 185 per month, which is half of the price that you have to pay for Airtel Digital, Ta...
Bharti Airtel merges Bangladesh unit with Robi Axiata Bharti Airtel Limited announced the completion of the merger of its subsidiary Airtel Bangladesh with Robi Axiata Limited (Robi Axiata), a unit of Axiata Group Berhad. The merger was completed following the fulfilment of the condition precedents to the Agreement and filing of the merger order with the Registrar of Joint Stock Companies and Firms of Bangl...
RCom’s voice subscribers fall 30% in one year on VLR count Anil Ambani Group's Reliance Communications has seen a sharp fall in its subscriber numbers after the migration of its CDMA network to LTE.According to the latest numbers released by the company, the total number of voice customers fell by 11.6% in the three months from June to September. Voice revenue fell 8.3% from the previous quarter.If we compar...
Oxigen sees four-fold jump in prepaid Visa card usage Oxigen, one of India’s oldest wallet payment system, said the load value on Oxigen Wallet prepaid visa cards have increased by 4 times in the last two days.It said people seem to be switching to prepaid cards to make payments in the wake of demonetization of high-denomination currency notes.“The daily average number of users have also increased by 16...
Future Retail to pay Rs 273 cr in stock for Heritage Foods’ retail biz Heritage Foods Ltd said it agreed to sell its food retail business to Future Retail Ltd in return for shares in the Kishore Biyani firm.The businesses covered by the deal are grocery and food retail, agricultural sourcing, processing and marketing, and bakery.As part of the deal, Future Retail will issue about 1.80 cr shares to the shareholders of He...
RCom to rebrand Reliance Digital TV as Chois HD? Anil Ambani group's Reliance Digital DTH may be rebranded to 'Chois HD', according to a twitter user, who also tweeted some photographs of the upcoming brand.Reliance Communications' Reliance Digital is arguably the weakest candidate among the five private companies that compete in India's DTH space.The DTH business is dominated Dish TV, Tata Sky, ...
Reliance Communications to sell towers to Brookfied Anil Ambani-promoted Reliance Communications has agreed to sell its tower assets to Brookfield Asset Management. RCOM will receive an upfront cash payment of Rs. 11,000 crore from the proposed transaction.It has signed a non-binding Term Sheet with Brookfield Infrastructure Group in relation to RCOM’s nationwide tower assets and related infrastructure. ...
RCom gets Bombay High Court approval for MTS merger Reliance Communications said its merger with Sistema Shyam Teleservices has been approved by the Bombay High Court.The Anil Ambani company is merging with SSTL, which operates telecom services under the MTS brand in India.After the merger, RCom shareholders will hold 90% of the resulting entity, with the remaining held by MTS.After this merger, t...
Cognizant to help transform Future Group’s consumer business Cognizant said that it has entered into a partnership with Future Group, an Indian multi-brand retailer, to transform its consumer goods business, Future Consumer Limited (FCL), into a connected enterprise.“In an era where data, insights and supply chain intelligence are crucial ingredients for turning success into market leadership, Cognizant’s technolo...