Music Broadcast Limited’s Acquisition of Reliance Broadcast Network’s BIG FM

EY India is acting as the Investment Banker to the transaction. PricewaterhouseCoopers is acting as financial and tax due diligence and Khaitan & Co are acting as the legal advisors to MBL. ICICI Securities is acting as financial advisor to MBL.

Reliance Broadcast Network Limited operates one of the largest FM radio networks in the country under the brand name BIG FM.

BIG FM is one of India’s most awarded radio networks and has been the pioneer of innovative formats like storytelling with shows like Yaadon Ka Idiot Box with Neelesh Misra, and boasts of some of the most popular celebrity radio shows in the country like Suhana Safar with Annu Kapoor.

The acquisition will enable MBL expand its footprint pan India and the combined network will have 79 radio stations making it the largest radio network in India.

Khaitan & Co advised Music Broadcast Limited (MBL) in relation to the acquisition of 24% of the equity share capital of Reliance Broadcast Network Limited (RBNL) by way of a preferential allotment for a total consideration of INR 202 crores and thereafter subject to the receipt of the approval from the Ministry of Information and Broadcasting, Government of India, MBL will acquire the entire equity stake held by the promoters (i.e. Reliance Capital Limited and Reliance Entertainment Networks Private Limited) in RBNL for a cash consideration that will be determined basis of an enterprise value of INR 1050 Crores (after making adjustments for variations, if any, on the basis of audited accounts of RBNL for the year ended 31 March 2019). This is the largest deal (by value and size) in the FM radio space in India.

Khaitan & Co advised Music Broadcast Limited with a team including Rajat Mukherjee (Picture), Sarthak Sarin and Abhiroop De.

Involved fees earner: Rajat Mukherjee – Khaitan & Co.;

Law Firms: Khaitan & Co.;

Clients: Music Broadcast Ltd;

Author: Michael Patrini