Music Broadcast Limited to acquire Reliance Broadcast Network's BIG FM
The acquisition will subsequently create India’s largest radio network with 79 stations
Published - May 29, 2019 7:43 AM Updated: May 29, 2019 7:43 AM
The Board of Directors of Music Broadcast Limited has approved the acquisition of Reliance Broadcast Network Limited (“RBNL”), a Reliance ADA Group company.
Reliance Broadcast Network Limited operates one of the largest FM radio networks in the country under the brand name BIG FM.
BIG FM is one of India's most awarded radio networks and has been the pioneer of innovative formats like storytelling with shows like Yaadon Ka Idiot Box with Neelesh Misra, and boasts of some of the most popular celebrity radio shows in the country like Suhana Safar with Annu Kapoor. With original content-based shows and engaging brand-led campaigns and timeless music, Big FM has consistently won accolades at prestigious industry awards like the EMVIES, ABBYs, Asian Customer Engagement Awards, Indian Radio Forum & New York Festival. MBL’s Radio City and BIG FM have complementary offerings with limited overlap.
The combined network will have 79 Stations making it the largest radio network in India.
Subject to entering into definitive binding agreements, Radio City will initially acquire 24% equity stake of Radio Broadcast Network Limited ("RBNL"), the terms of which are being finalized, by way of a preferential allotment for a total consideration of Rs.202 crores. Further, on receipt of all regulatory approvals, MBL will acquire the entire stake held by the promoters of RBNL basis an enterprise value of Rs.1050 Crore after making adjustments for variations, if any, on the basis of audited accounts for the year ended March 31, 2019.
The entire transaction is expected to close in the first quarter of FY2021.
EY India is acting as the Investment Banker to the transaction. PricewaterhouseCoopers is acting as financial and tax due diligence and Khaitan & Co are acting as the legal advisors to MBL. ICICI Securities is acting as financial advisor to MBL.For more updates, be socially connected with us on
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