Anil Ambani-led Reliance Capital Ltd has decided to sell a 49% stake in its radio business and its entire TV business to Zee Group entities on Wednesday. Reliance Broadcast Network Ltd (RBNL) – part of the Anil Ambani group, has entered into a definitive and binding agreements with Zee Media Corp. Ltd.
The deal will help Reliance to reduce its debt by nealy ₹ 1,900 crore ($283 million), the company said. The transactions are expected to be completed by next year.
“Zee Entertainment Enterprises Ltd (ZEEL), a separate entity under Zee group, will acquire 100 per cent stake in the Group’s General Entertainment TV business,” said Reliance Capital in a statement.
The company would transfer 49 per cent of its radio business to Zee Media, which operates several media ventures including 11 news channels. “The transaction pegs the combined Enterprise value of Radio and TV business at approx. ₹ 1,900 crore (USD 283 million),” added Reliance Capital.
“These transactions form part of Reliance Capital’s stated strategy to reduce leverage and exposure in non-core business of media and entertainment,” said the firm.
The TV broadcasting business regulated under Reliance RBNL comprises two operational general entertainment channels, Big Magic and Big Ganga, and four other TV licences. Besides, RBNL also operates 45 FM radio stations.
“Both these transactions have been approved by the boards of respective,” Reliance Capital said.