The Reliance group of Anil Ambani will sell its big FM Radio broadcasting business in a two-part deal to the Jagran Prakashan group and to another local media player. The total value of the deal is said to be Rs. 1,200 crore.
Reliance operates 58 radio stations in the country under its Big FM brand. In the first phase, it will sell 40 radio stations to Jagran for Rs. 1,050 crore. In the second phase, Reliance will sell the balance 18 stations to another FM radio operator for Rs. 150 crore. If Jagran were to acquire all the 58 radio stations of Big FM, there would be an overlap of 18 radio stations with the former’s portfolio. Rules do not allow a single operator to run two radio stations in one circle.
Reportedly, Jagran Prakashan will acquire 24% stake in Reliance Broadcast Network for Rs. 202 crore. After the regulatory approvals, it will acquire the remaining 76% for Rs. 848 crore. The balance 18 FM stations in RBN will then be sold to the second party. The deal is expected to close in the first quarter of fiscal year 2020-21. After the deal, Jagran will have 79 radio stations, making it the largest operator in the FM radio broadcasting business in India. Jagran operates the business under the Radio City brand.
