Anil Ambani’s Reliance Capital on Wednesday announced that it would sell its whole TV entertainment and 49 percent stake in its radio business to Subhash Chandra-led Zee group units to cut debt by Rs 1900 crore.
On Wednesday, Reliance has signed with this deal and said that “ZEE Entertainment Enterprises Limited, a spate unit under Zee Group will obtain 100 percent stake in Reliance’s Entertainment TV business and 49 percent of its radio business to Zee Media Corporation Limited (ZMCL) which is currently operating 11 news channels.”
The Anil Ambani-led Reliance Capital group said the company took this initiative to exit non-core business to cut debt. According to the latest news, under the TV business, Zee group has attained two operational general entertainment channels Big Ganga and Big Magic and four other TV licenses. Big Ganga is a popular Bhojpuri entertainment channel providing services to the audience in Bihar, Jharkhand, and Purvanchal while Big Magic is a comedy channel.
According to the Government’s lock-in rules, the purchase of 59 FM radio licenses will be made in two stages. After the lock-in period expires, Zee will also have the right to buy the remaining 51 percent stake.
Reliance Broadcast Network Limited (RBNL) operates 45 FM radio stations. Besides that, it has taken 14 new licenses under phase-III auctions. Reliance Said, “All these transactions have been approved by the boards of two companies and are expected to be completed by next year.”
On the flipside, Zee said, “The board of directors of Zee Entertainment Enterprise today approved the attainment of global entertainment broadcasting business enterprise of reliance big broadcasting Private Limited, Big Magic Limited and Azalai Broadcast Private Limited, all part of Anil Ambani-led Reliance group. Meanwhile, the transaction is expected to close in the second-half of 2017.”
According to the contract, RBNL would transfer its FM radio operations and licenses to two special Purpose Vehicles (SPV’s).