Reliance Capital to exit media business to reduce debt burden
DSIJ Intelligence / 23 Nov 2016
Reliance Capital is divesting its radio and TV businesses to reduce its debt by about Rs 1900 crore on completion of stake sale.
Reliance Capital is divesting its radio and TV businesses to reduce its debt by about Rs 1900 crore on completion of stake sale. This divestment forms part of the company’s stated strategy to reduce leverage and exposure in non-core business of media and entertainment.
Reliance Broadcast Network (RBNL), the largest operator of FM channels in India, has signed definitive and binding agreements with Zee Media Corporation (ZMCL) to sell 49 per cent stake in its radio broadcast business. Simultaneously, Zee Entertainment Enterprises (ZEEL) will acquire 100 per cent stake in the group’s general entertainment TV business.
Both the transactions have been approved by the boards of respective companies and are expected to be completed by next year, subject to approvals.
On the financial front, Reliance Capital’s revenue increased 34.16 per cent to Rs 4,886 crore in Q2FY17 as compared to the same period in the previous fiscal. The company’s net profit also rose 22.22 per cent to Rs 253 crore in Q2FY17 on a yearly basis.
The share price of Reliance Capital increased 4.47 per cent on the bourses and closed at Rs 438.6 on intraday basis.
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