Anil Ambani’s Reliance ADA group is delisting its Reliance Broadcast Network business from the stock exchanges, with shares of RBNL being acquired by Reliance Share & Stock Brokers Private Limited (R-Share), Reliance Land Private Limited (R-Land) and Reliance Capital Limited (R-Cap). RBNL includes businesses like 92.7 BIG FM, and TV channels BIG Magic, BIG RTL Thrill and production house BIG Production. It’s worth noting that CBS Studios and Reliance Broadcast Network Ltd terminated their 50:50 joint venture in India last week, three years after the two media companies had partnered to launch TV Channels in the country. The JV had launched three channels: Big CBS Prime (Premium General Entertaiment Channel), Big CBS Love (for women) and Big CBS Spark (Music).

rbnl-financials

The Radio business has been doing well for RBNL, but it’s the TV business that has been bleeding. In Q2-FY14, RBNL reported an operating income of Rs 58.59 crore, and a loss of Rs 18.69 crore, with the Radio segment reporting revenues of Rs 49.8 crore and a profit of Rs 4.97 crore. The TV business, on the other hand, reported revenues of Rs 8.66 crore, and an EBITDA loss of Rs 16.97 crore. Details.

Net Worth of the company, as on 31st March 2013 was negative.

Business Standard reported a couple of days ago that RBNL will focus on its Big Magic brand, and focus on comedy/light entertainment, and local original content rather than international content, with RBNL CEO Tarun Katiyal pointing out that “the audience for international content have moved to digital rather than to linear television. I think the long term scope for any broadcast company lies in channels where they own IP and content and have mass local connect.”

Details of the delisting offer:

– The issued, subscribed and paid-up share capital of RBNL is Rs 39.72 crore, comprising of 79,451,170 shares having face value of Rs 5.
– The acquirers hold 74.95% (59,549,316 shares) of the shareholding , while the public shareholding is 25.05% (19,901,854)
– RBNL will delist once the promoter shareholding reaches 90%
– The floor price for acquisition is Rs. 46.47 per share, around Rs 92.48 crore in total for acquiring the remaining 25.05%. RBNL’s stock price is currently at Rs 63.80, and at that price, the cost of the acquisition will be around Rs 126.97 crore

Proposed Timetable for the Delisting Offer:

– Dispatch of Bid Letter/ Bid Forms to Public Shareholders as on the Specified Date – January 30, 2014
– Bid Opening Date – (10.00 a.m.) – February 12, 2014
– Last date for upward revision or withdrawal of Bids (3.00 p.m.) – February 17, 2014
– Bid Closing Date (3.00 p.m.) – February 18, 2014
– Last date for making Public Announcement of Discovered Price/ Exit Price and Acquirer’s acceptance/ rejection of Discovered Price/ Exit Price – March 04, 2014
– Last date for payment of consideration for the Offer Shares to be acquired in case of a successful Delisting Offer (subject to the acceptance of the Discovered Price (if it is higher than the Floor Price) or offer, of an Exit Price higher than the Discovered Price by the Acquirers) – March 06, 2014
– Last date for return to Public shareholders of Offer Shares tendered but not acquired under the Delisting Offer – March 06, 2014