In return (on a swap ratio basis), the Red FM promoters together picked up 35% stake of the enlarged equity of SAFL.
As part of the transaction, SAFL has picked up stake in Red FM by acquiring equity of the holding companies of the latter at par.
The promoters of Red FM will continue to hold 51.1%.
In lieu of this, the promoters of Red FM such as Usha Reddy, Arjun Rao alongwith NDTV have, through their investment company A H Multisoft and NDTV News, respectively, subscribed to 35% stake of the enlarged equity of SAFL, Sun TV Network informed the stock exchanges on Thursday.
Sun TV Networks move aimed at enlarging its FM radio presence across the country, particularly in northern and western regions.
Red FM, one of the fastest growing FM radio companies in India, operates three stations of Mumbai, Delhi and Kolkata. It is the number two-player of the largest FM radio markets (Mumbai and Delhi).
SAFL, which has licenses for 23 FM radio stations across the country (other than southern states of Tamil Nadu, Karnataka, Andhra Pradesh and Kerala), has launched its operations in Jaipur and Bhubaneshwar.
The alliance enables Sun TV Network to boost its presence in the fast growing FM radio market in India.
The group is said to have earmarked close to Rs 50 crore for FM stations across the country.