The Board of Directors of Anil Dhirubhai Ambani Group (ADAG) controlled Adlabs Films Ltd has approved the demerger of the company’s radio business into Reliance Unicorn Ltd. The demerger will be effective from March 1, 2006 instead of the previously decided date of April 1, 2006.
The demerger follows the composite scheme of amalgamation and arrangement between Adlabs Films Ltd, Entertainment One (India) Ltd, Reliance Unicorn Ltd and Mukta Adlabs Digital Exhibition Pvt Ltd and their respective shareholders and creditors. The amendment is subject to the approval of shareholders, creditors and the High Court of Judicature at Bombay.
Rajesh Sawhney, President, Reliance Entertainment, said, “The Adlabs radio venture will now be known under the business name of Reliance Unicorn Ltd. We had bid for the radio licenses under the Adlabs name. The radio business being named as Reliance Unicorn Ltd signifies the demerger of the radio business.”
Sawhney clarified that this would not be the brand name of the radio venture, but the business name of the radio venture.
As is known, Adlabs Films had won 57 frequencies across the country, but had to surrender 12 stations to adhere to the government norm that mandates no single company can own more than 15 per cent of the total number of frequencies put up for sale throughout the country. Adlabs now has a total of 45 FM radio licenses, making it one of the largest players in terms of number of licenses won, including stations of existing players.