The Hindu Business Line : Living Media sells FM radio biz in three metros

LIVING Media Group has sold Radio Today (Mumbai) Broadcasting Ltd, Radio Today (Delhi) Broadcasting Ltd and Radio Today (Calcutta) Broadcasting Ltd to a joint venture between Value Labs, Malaysia's media group - Astro and NDTV News. Industry sources have pegged the deal at about Rs 100 crore.

The Aroon Purie-promoted companies operated under the Red FM brand in the three circles of Mumbai, New Delhi and Kolkata.

It is believed that the Malaysian company has picked up 20 per cent stake, in accordance with the present foreign direct investment (FDI) ceiling in the private FM radio sector, while Value Labs is the majority Indian partner.

Sources said the decision to sell off the existing licences by Living Media is mainly because the group felt that this was a better option than migrating from Phase I to Phase II, which could lead to a large financial outgo.

Radio Today Broadcasting is among the companies that have qualified to participate in the financial bids for the second phase of FM Radio broadcasting.

The company will participate in the financial bidding for over a dozen frequencies including the three metros it just exited, said sources.

Meanwhile, the joint venture company has already received clearance from the Government on this deal.

In a statement, Mr Arjun Rao, Founder Promoter and CEO, Value Labs, said, "We're very excited with the opportunity to expand into the radio sector in India and we hope to build upon our global experience in the multimedia space. The possibilities that exist in relation to creating an interactive eco-system across radio, television, Internet and mobile is something we're looking forward to."

Added Mr Narayan Rao, Director, NDTV, "We've been planning to enter into radio for some time now. We're very excited about it especially with the option of migrating to Phase II without the old fixed licence regime. We see a lot of cross media synergies by entering the space."

Ambit Corporate Finance Pte Ltd was the financial advisor to the transaction while Amarchand & Mangaldas while Suresh A Shroff acted as the legal advisors.

The NDTV share today closed at Rs 211 on the Bombay Stock Exchange.

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