(Bloomberg) -- Indian tycoon Anil Ambani will sell his FM radio broadcasting business to a local media conglomerate for at least 10.5 billion rupees ($151 million), both companies said in separate statements to stock exchanges.
Ambani’s Reliance Capital Group plans to first sell a 24% stake in its entertainment company Reliance Broadcast Network Ltd. to Music Broadcast Ltd., a unit of Jagran Prakashan Ltd., for 2 billion rupees before a complete disposal at an enterprise 10.5 billion rupees, subject to regulatory approvals, the statement said. The combined network will have 79 stations, making it the biggest in India. The deal is expected to close in the first quarter of the financial year starting April 2020.
The radio business is a unit of Reliance Capital Ltd., the Anil Ambani group’s financial services arm.
The exit from the radio business is part of efforts by Ambani, 59, to cut wider group liabilities after a debt-fueled expansion in the past decade strained finances, while a subsequent government crackdown on bad loans led to the collapse of his wireless phone-services unit. This will be the second sale in quick succession for Reliance Capital, Ambani’s final stronghold, which last week sold a stake in its asset-management business to partner Nippon Life Insurance Co. for about $650 million.
Reliance Communications Ltd., the telecom operator controlled by Ambani, is facing insolvency proceedings, while his power, defense and infrastructure units have battled piling debt, bankruptcy cases and regulatory hurdles.
The Economic Times earlier reported on the impending Reliance Broadcast deal.
©2019 Bloomberg L.P.
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