STAR Group has announced its plans to acquire 20 per cent stake in Music Broadcast Pvt Ltd (MBPL), promoter of Radio City. STAR is buying this stake from venture capital fund India Value Fund (IVF). MBPL is currently jointly owned by IVF, which has a 75 per cent stake, and Radiovani, which holds a 25 per cent stake. Upon conclusion of the proposed investment, the overall ownership structure of MBPL would be IVF (55 per cent), STAR (20 per cent), and Radiovani (25 per cent). The agreement is subject to the approval of the Foreign Investment Promotion Board.
It may be recalled that STAR had sold its stake in MBPL to IVF in early 2005.
Sources close to the development said that STAR would also work with Radio City for radio partnership and sponsorship, but may or may not extend the support to providing content or ad sales support to Radio City.