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Our Bureau

Coimbatore, Aug. 30 Sun TV Network Ltd, in an effort to expand its FM radio broadcasting business in the North, West and Eastern markets in the country, has entered into a strategic alliance with Red FM, which has a significant presence in those markets.

Sun TV, through its subsidiary South Asia FM Ltd (SAFL), has picked up a 48.9 per cent ‘beneficial interest’ in Red FM by acquiring equity of the holding companies of Red FM at par, the network has stated in a communication to the NSE.

The promoters of Red FM would continue to hold 51.1 per cent. In lieu of this, the promoters of Red FM — Ms Usha Reddy, Mr Arjun Rao, along with NDTV, have through their investment company A.H. Multisoft and NDTV News respectively, subscribed to 35 per cent of the enlarged equity of SAFL. The balance equity of SAFL continued to be held by its existing shareholders, the communication added.

SAFL owned 23 FM radio licenses all over India (except the southern States of Tamil Nadu, Karnataka, Andhra Pradesh and Kerala). It has, at present, two operational radio stations at Jaipur and Bhubaneshwar. Red FM operates three radio stations in Mumbai, Delhi and Kolkata and is the ‘no. 2 player’ in two of the largest FM radio markets in the country — Mumbai and Delhi, the Sun TV notification said.

Sun TV said the alliance would enable it to boost its presence in the fast growing radio market in the country. Enam Securities Pvt Ltd acted as the sole advisor to Sun TV in this transaction.

However, the valuation/financial details of the transaction were not disclosed in the communication to the stock exchange.

More Stories on : Alliances & Joint Ventures | Mergers & Acquisitions | Radio/TV | Strategy

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