TV Today Network (parent company of Oye FM) has informed the Bombay Stock Exchange that it has entered into a binding contract with ENIL (parent company of Radio Mirchi) to sell its four stations (Jodhpur, Amritsar, Patiala, and Shimla) .
The MIB had earlier given the approval for the deal in July. Now the contract has been signed between the two companies in a Rs 4-crore deal. ENIL will also pay for the migration fees for the stations from Phase II to Phase III.
The MIB had earlier blocked the proposed purchase, following which, both ENIL and TV Today Network, the owners of Oye FM, had approached the High Court. As we had mentioned when we first reported the news of Radio Mirchi acquiring Oye FM, one of the key reasons for Mirchi’s interest would have been the licenses in metros like Delhi and Mumbai. However, a stumbling block was due to the Phase II laws which do not allow operators to have multiple frequencies in the same city. –
See more at: Radio Mirchi gets MIB nod to acquire Oye FM's four stations - See more at: http://www.exchange4media.com/radio/radio-mirchi-gets-mib-nod-to-acquire-oye-fms-four-stations_60916.html#sthash.hB5j0Czl.4RhqWdCT.dpuf
Though, under the Phase III rules, this is allowed, it seems the MIB has decided that it goes against the rules as Radio Mirchi holds frequencies in all three cities, i.e. Delhi, Mumbai and Kolkata. Another reason could also be that the Ministry does not want to lose out on potential suitors for these high-profileMARKETS just before the auctions as this would lead to loss of revenue to the government.