Anil Ambani is in talks to sell his FM radio broadcasting business to a media conglomerate for INR₹ 1,200 crore. Reliance Broadcast Network Ltd. plans to first sell a 24% stake to a unit of Jagran Prakashan Ltd. before a complete disposal in staggered transactions.
The sale needs to be done in stages as per rules governing radio broadcasting, the talks are highly confidential and the formal announcement is expected in a week’s time.
The radio business is a subsidiary of Reliance Capital Ltd. the Music Broadcast Ltd., a unit of Jagran Group, in a statement on Monday said that no definitive document has been signed and the board proposes to consider the move later.
Mr. Ambani plans to cut wider group liabilities after a debt fueled expansion over the past decade strained finances, while the firms telecom brand collapsed completely and now the government are going down after owners of bad loans.
This would be the second sale for Reliance Capitals who sold stake last week in ‘Reliance Nippon Life Asset Management Ltd’ for US$ 650 million.
Mr. Ambani needs over US$ 2 billion to keep his core businesses intact.
Source : Various