Music Broadcast gains on plans to acquire RBNL

Music Broadcast has received approval for the acquisition of Reliance Broadcast Network (RBNL), a Reliance ADA Group company. 

Reliance Broadcast Network operates one of the largest FM radio networks under the brand name BIG FM. The Board of Directors of the company at their meeting held on May 27, 2019 has approved the same. 

Upon entering into definitive binding agreements, Radio City which is a part of Music Broadcast will initially acquire 24 per cent equity stake of RBNL, the terms of which are yet to be finalized by way of a preferential allotment for a total consideration of Rs. 202 crore. 

Further, on receipt of all regulatory approvals, MBL will acquire the entire stake held by the promoters of RBNL basis an enterprise value of Rs. 1,050 crore after making adjustments for variations. The entire transaction is expected to close in the first quarter of FY21. 

On Tuesday, the shares of Music Broadcast opened at Rs. 61.65 against Monday’s close of Rs 59.05. At 12:32 hours, the stock was trading at Rs. 59.85, 1.35 per cent higher than the previous close. It reached an intraday high of Rs. 62 and an intraday low of Rs. 58 per share on the BSE. The 52-week high stood at Rs. 73.80 and 52-week low was at Rs. 50 per share on the BSE.