Reliance Capital is planning to unlock value in the Radio and TV businesses that will reduce its debt by around Rs 1,900 crore ($283 million) upon final completion of stake sale transactions. These transactions form part of company’s stated strategy to reduce leverage and exposure in non-core business of media and entertainment.
Reliance Broadcast Network (RBNL), the largest operator of FM channels in India, has signed definitive and binding agreements with Zee Media Corporation (ZMCL) to sell 49% stake in its radio broadcast business. Simultaneously, Zee Entertainment Enterprises (ZEEL), a separate entity under Zee Group, will acquire 100% stake in the Group’s General Entertainment TV business. The transaction pegs the combined Enterprise value of Radio and TV business at around Rs 1,900 crore ($283 million).
The entire proceeds from the stake sale would be used to reduce company’s debt upon final completion of stake sale transactions. 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.
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| Chola Invest & Fin. | 1579.65 |
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