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BBC picks up 17.5% stake in Radio Mid-Day

BBC, the global media major, and leading investor Rakesh Jhunjhunwala are set to invest a combined Rs 42 crore in Radio Mid-Day West (India), the Mid Day group arm that runs FM channel Go 92.5.

BBC will pick up 17.5 per cent stake in Radio Mid-Day West for Rs 31.85 crore, putting the valuation of the radio company at Rs 182 crore.

The investment of BBC is part of the joint venture the global media company has forged with the Mid-Day group to enter the country’s radio space. The investment is lower than the 20 per cent permissible limit by a foreign company in an Indian radio company.

Jhunjhunwala will invest Rs 10 crore. Although Jhunjhunwala declined to reveal his stake, industry sources said he would get nearly 5.50 per cent stake in Radio Mid Day West. Jhunjhunwalla holds a 5.29 per cent stake in Mid Day Multimedia, the parent company of Radio Mid Day West.

In a media statement, Mid Day said the funds would be utilised for the second round of bidding of licences of FM radio. Radio Mid Day West has put in bids for 20 stations across the country.

Announcing the partnership, BBC Worldwide managing director global TV sales, Mark Young, said, “This is a very exciting and pivotal time to enter the Indian FM radio market. With liberalisation of this sector offering unprecedented opportunities in the FM radio space, and Mid Day Multimedia’s wealth of experience and expertise, our new partnership is well on course to establish a leading national radio business across India.”

Tariq Ansari, managing director, Mid Day Multimedia added, “BBC Worldwide’s experience as a global media player brings our radio business to a new level. With access to one of the world’s most respected media organisations, we expect to establish a network of radio stations where producers can use the BBC’s radio expertise to develop and inspire their programming on a local level.”

The joint venture received the Foreign Investment Promotion Board (FIPB) approval. Prior to this agreement, Mid-Day Multimedia owned 82.98 per cent of Radio Mid-Day, while the remaining 17.02 per cent is held by Ferrari Investments and Trading Company, industry sources said Radio Mid-Day, which received frequencies to operate three stations in the first round of FM radio bidding, has applied in the second round for licences in all the four regions and twenty stations. Of the three allotted frequencies in the first round of bidding, only one is operational in Mumbai titled GO FM.

( www.business-standard.com)

 
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