Anil Ambani owned Adlabs Films Ltd at its Board of Director’s meeting held on April 23 approved the proposal for demerger of the FM radio business into a wholly owned subsidiary (SPV). It also approved issue of pro-rata shares by the SPV to all shareholders of the company in the ratio of two shares of the SPV for every share of the company, without any payment.
Speaking to exchange4media, Rajesh Sawhney, President, Reliance Entertainment, said, “The demerger of the radio business will allow it to raise funds through equity or debt instruments and will bring further value to Adlabs shareholders.”
Earlier, speaking to CNBC, Manmohan Shetty, MD, Adlabs Films, said that the company was planning to launch four FM radio stations by early October. “Everything is in place, including the manpower. The first four stations will come up in October this year; that’s the target we have.”
The company has won 45 licenses under the FM Phase II expansion, including the four metros where the government has allowed interim transmission.
Shetty further told CNBC that the demerger would start in the October-December quarter.
The company also informed BSE that two other subsidiaries of the company – Entertainment One India Ltd and Mukta Adlabs Digital Exhibition Pvt Ltd – would be merged with the company.