ADVERTISEMENT

Reliance Capital to divest entire stake in RBNL to Music Broadcast Limited

File photo of Anil Ambani.
File photo of Anil Ambani.
Reliance Capital and Reliance Land, a part of the Reliance Capital Group, said they had decided to divest their entire stake in Reliance Broadcast Network Limited (RBNL) to Music Broadcast Limited (MBL), which is a part of media conglomerate Jagran Prakashan Group.
 
RBNL operates under the brand name Big FM Radio network with 58 stations across India.
 
A press release from Reliance Capital, a part of the Reliance Anil Dhirubhai Ambani Group (ADAG), said MBL would initially acquire a 24% equity stake of RBNL by way of a preferential allotment for a total consideration of Rs. 202 crore and thereafter, subject to the receipt of all regulatory approvals, it will acquire all of the remaining equity stake held by Reliance Capital and Reliance Land in RBNL at a total enterprise value of Rs. 1,050 crore.
 
In addition, Reliance Capital will receive an estimated Rs 150 crore from the disposal of other assets of RBNL which do not form part of the transaction with MBL, in accordance with the regulations, it said.
 
In aggregate, the transaction will reduce Reliance Capital’s outstanding debt by an estimated Rs 1,200 crore, the release said.
 
Mr Amit Bapna, CFO, Reliance Capital said, “We are delighted to announce the asset monetization transaction with Music Broadcast Limited, a leading FM Radio broadcaster. This transaction is part of our overall strategy to reduce exposure in non-core businesses and will reduce Reliance Capital’s debt by an estimated Rs 1,200 crore. 
 
"Together with the recently announced stake sale in Reliance Nippon Asset Management for Rs 6,000 crore and other ongoing monetization plans, we expect Reliance Capital’s debt to reduce by approximately Rs. 12,000 crore (nearly 70%) in the current financial year," he said.
 
The proposed transaction is subject to regulatory and other approvals, the release said.
 
EY India is acting as the exclusive Investment Banker to the transaction, and Phoenix Legal is acting as legal advisors to Reliance Capital group.
 
NNN
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <canvas>
  • Lines and paragraphs break automatically.

More information about formatting options

© Copyright 2012 NetIndian. All rights reserved. Republication or redistribution of NetIndian content, including by framing or similar means, is expressly prohibited without the prior written consent of NetIndian Media Corporation. Write to info[AT]netindian[DOT]in for permission to use content. Read detailed Terms of Use.