Radio City expands its footprint, acquires Friends FM in Kolkata
The Board of Music Broadcast Limited (MBL), which runs Radio City FM station that has presence in 39 cities (as on March 31, 2017), has approved the acquisition of the radio division of Ananda Offset Pvt Ltd by way of slump sale. Ananda Offset holds a channel licence in Kolkata under the brand name Friends 91.9 FM, which it had acquired under the Phase II regime and is operational since 2007.
- Strategic Rationale:
- The transaction allows MBL to enter into the Kolkata market, which is one of the top 5 markets in the country
- Friends FM is an established brand since the last 10 years
- Focus is to untap the large potential from national advertisers
- MBL has had a sales alliance with AOPL since the last 5 years
- Transaction is expected to be value accretive and help in improving the EBITDA margins
- Transaction Details:
- Under the terms of the agreement MBL will acquire 100% ownership of the radio division of AOPL, subject to MIB approval
- The transaction is by way of slump sale on a going concern basis
Commenting on the development, Apurva Purohit, Director, Music Broadcast Limited, said, “We are happy to announce that the board has approved the acquisition of the radio division of Ananda Offset Private Limited (AOPL). This acquisition gives us access in the Kolkata market, which is considered as one of the top 5 markets in the country which was earlier not present in our bouquet. I am very confident that the coming together of strong and established brand like Friends FM, the high quality local team it has and our national footprint across all key cities in India will give us several opportunities to create EPS accretive synergies.”
The transaction is subject to Ministry of Information & Broadcasting approvals.
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