Reliance Capital said that this will help to reduce debt by Rs 1,900 crore through value unlocking in radio & TV business upon final completion of stake sale transactions. "
Reliance Capital, a part of Anil Ambani-led Reliance Group, on Wednesday announced value unlocking in the Radio and TV businesses that will reduce its debt by approx. Rs 1,900 crore upon final completion of stake sale transactions “Transaction part of companies stated strategy to focus on core financial services business,” Reliance Capital said. These transactions form part of Reliance Capital’s stated strategy to reduce leverage and exposure in non-core business of media and entertainment. Reliance Broadcast Network Limited (RBNL), the largest operator of FM channels in India, has signed definitive and binding agreements with Zee Media Corporation Limited (ZMCL) to sell 49% stake in its radio broadcast business.
Both these transactions have been approved by the boards of respective companies and are expected to be completed by next year, subject to applicable approvals. “We are happy to bring in Zee Media as our partner in the Radio business and divest 100 per cent of our general entertainment TV business to Zee Entertainment. This transaction is part of our strategy to reduce exposure in non-core business of media and entertainment and work towards further reducing our debt under Reliance Capital”, said Mr. Sam Ghosh, ED and Group CEO, Reliance Capital.
“We are pleased to announce this partnership which shall not only be complementary to our current business but accelerate its growth too. We are currently running successfully a bouquet of 11 news and current affair channels and with the addition of 59 radio licenses, we will be reaching out to a much increased audience base and will keep them engaged on different media platforms. This transaction shall bring about the desired business diversity and will help in achieving the sound financial objectives at an accelerated pace. We are confident that this investment will enhance value for all stakeholders and looking forward towards this exciting journey to take the company to the next level”, said Mr. Rajiv Singh, COO, Zee Media Corporation.
RBNL runs the largest network of FM Radio channels in India under the brand name of 92.7 Big FM that reaches out to 45 cities, 1200 towns and over 200 million people.