Zee group to buy stake in Reliance TV channels and radio business for 1890.4 crore

Zee group to buy stake in Reliance TV channels and radio business for 1890.4 crore. Reliance group has entered into a deal with Zee group to sell its 100% stake in TV channels and sell 49% stake in radio business to Zee group. The total deal will cost Rs 1890.4 crore($283 million) to Zee group. Zee Entertainment Enterprises Ltd (ZEEL) which is a entity under Zee group, will acquire 100% stake in the

Reliance Group’s General Entertainment TV business. For this ZEEL will pay Rs 298.4 crore to Reliance group. Tv channels includes Big Magic and Big Ganga, and four other TV licences.

iii. On the other hand the news media company Zee Media Corporation (ZMCL) will buy 49% stake in the radio business Reliance Broadcast Network Ltd(RBNL).This deal is worth Rs 1,592 crore. 

iv. Due to regulatory rules of rabio business ZMCL will be able to acquire only 49% stake. RBNL operates 45 FM radio stations, and it has 14 stations in non-operational condition which was acquired last year by Reliance group.

v. The transaction is expected to close in the second half of year 2017.