ZEE drops plan to buy Anil Ambani's Reliance Broadcast

SynopsisZEE was looking to acquire controlling stake in both the television and radio businesses, but current regulatory guidelines do not allow it in radio, which is why the company is not pursuing the deal.ET BureauMUMBAI: Zee Entertainment Enterprises NSE 0.08 % (ZEE) is no longer interested in acquiring the broadcasting business of Anil Ambani-owned Reliance Broadcast NSE -0.07 % Networks (RBN). ZEE was looking to acquire controlling stake in both the television and radio businesses, but current regulatory guidelines do not allow it in radio, which is why the company is not pursuing the deal, said managing director Puneet Goenka. “The current FDI guidelines don't allow more than 49% of foreign holding, while ZEE has more than that. And ZEE's phi losophy has been to acquire controlling stake,“ Goenka said. Earlier, the company was in talks with RBN to buy 49% of the radio business housed under BIG FM and all of the television unit. Multiple sources in both ZEE and RBN had confirmed to ET that talks were at an advanced stage. The phase III radio guidelines also stipulate a three-year lock-in period for promoters, because of which they cannot sell more than 49% stake. In fact, an industry source had told ET that ZEE does have the option to take full control of the radio business after the lock-in, which ends on April 1, 2017. A top ZEE official had said, “ZEE is definitely interested in acquiring the television and radio businesses of RBN“, disclosing that the talks have happened “multiple times over the last year.“ The deal would have valued RBN around `1,800-2,000 crore. RBN runs the largest private FM business in India in terms of frequencies under the Big FM brand. It currently operates in 45 cities with sales partnerships in two other cities. The company had spent `116.9 crore to acquire 14 additional frequencies in the phase III auctions, which will take it to 59 stations by the end of this year. Read More News onAnil AmbaniReliance BroadcastZeeZee Entertainment EnterprisesRBNpuneet goenka(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)Download The Economic Times News App to get Daily Market Updates & Live Business News.Add Comment

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