Entertainment Network India Ltd (ENIL) has entered into a non-binding agreement with TV Today Network to acquire three radio stations from the latter on a slump sale basis.
The two companies had signed the MoU on 16 March for the sale of TV Today’s New Delhi, Mumbai, and Kolkata radio stations to ENIL.
ENIL has clarified that the proposed transaction will be undertaken by way of a business transfer, and not by way of a share purchase transaction or a share subscription transaction.
On 16 March, TV Today had disclosed that the company has withdrawn the application before the ministry of information and broadcasting (MIB) to transfer the three radio stations to a wholly owned subsidiary Vibgyor Broadcasting.
The company has sold the FM radio stations to focus on the core news broadcasting business.
The transaction is expected to close in 6 to 9 months.
“Please note that the Company has only executed a Non-Binding Memorandum of Understanding with TVTNL dated March 16, 2018, for the proposed acquisition of 3 (three) radio stations in New Delhi, Mumbai, and Kolkata by the Company from TVTNL, by way of a slump sale (“Proposed Transaction”),” ENIL said in its reply to the BSE.
“The disclosure dated March 16, 2018, was made to the stock exchanges and public as a matter of good corporate governance. We reiterate that the Proposed Transaction is contemplated to be undertaken by way of a business transfer, and not by way of a share purchase transaction or a share subscription transaction. The Company will not be acquiring any shares of TVTNL under the Proposed Transaction.”
In September 2015, TV Today had sold its four radio stations namely Jodhpur, Amritsar, Patiala and Shimla to ENIL for Rs 4 crore. While the plan was to sell all seven radio stations including Delhi, Mumbai, and Kolkata, the companies did get the MIB approval for the three metro cities.