The board of Music Broadcast has decided not to pursue the proposed investment in Big FM and the company will be terminating the definitive transaction documents with immediate effect.
On 12 June 2019, Music Broadcast had entered into definitive agreements with Reliance Capital, Reliance Entertainment Networks and Reliance Broadcast Network (RBNL).
The agreement was for initial acquisition of 24% equity share capital by the company in RBNL by way of a preferential allotment. Thereafter, subject to regulatory approvals, acquisition of 75.71% of the equity share capital held by the promoters in RBNL.
The approval for the proposed acquisition in Big FM was subject to clearance/approval from the Ministry of Information and Broadcasting (MIB), Government of India.
The parties have not yet received the approval from the MIB and the long stop date under the definitive agreements has expired. Therefore, the board of Music Broadcast has now decided to not pursue the proposed transaction and will terminate the definitive transaction documents.
“This event will not have any impact on the ongoing business operations of the company, Music Broadcast said in a statement.
Music Broadcast is a subsidiary of Jagran Prakashan. It runs radio channel Radio City.
The company’s consolidated net profit declined 99.31% to Rs 0.07 crore on a 41.60% fall in net sales to Rs 40.67 crore in Q3 FY21 over Q3 FY20.
The scrip was down 1.44% to currently trade at Rs 24 on the BSE today. Business Standard