The TV Today Network has said that it has entered a binding contract to sell four of its radio stations to Entertainment Network (India) Limited (ENIL), the company informed in a notification with the Bombay Stock Exchange.
TV Today had received approval for the sale of its radio stations from the ministry of information and broadcasting earlier in July and said that the contract was signed between the two companies on September 11 amounting to Rs 4 crore. The company will sell its Jodhpur, Amritsar, Patiala and Shimla stations, the total turnover of which in the annual financial year 2014-2015 was Rs 3.96 crore equivalent to 0.8% of the total turnover of TV Today. According to the terms, ENIL will pay migration fees to MIB for shifting these radio stations from Phase II to Phase III.
Earlier in February, TV Today Network’s board members had agreed to sell seven of its radio stations and a non-binding memorandum of understanding with ENIL was signed. The radio stations to be sold then included its Delhi, Mumbai and Kolkata branches.
In April this year, TV Today approached High Court with an urgent writ petition to authorize sale of its Oye FM radio stations to Entertainment Network India Limited (ENIL) as its permissions from the ministry of information and broadcasting were getting delayed.
ENIL operates Radio Mirchi and is currently operational across 32 cities across India. TV Today currently operates three Hindi general news channels including Aaj Tak, Dilli Aaj Tak and Tez in Hindi and English general news channel Headlines Today.
It is also worth nothing that earlier in 2006, TV Today Network promoter, Living Media, sold the FM radio business under brand Red FM to a consortium of investors and later Kalanithi Maran’s Sun Network bought a stake in the company.
FM business financials
In the quarter ended June 30, TV Today’s FM radio broadcasting business reported a decrease of 26.70% to Rs 2.47 crore from Rs 3.37 crore from the same period last year. The radio business also declined sequentially by 36.72% from Rs 3.9 crore. This vertical witnessed a loss of Rs 2.62 crore compared to the loss of 2.56 crore in the same quarter last year.
Foreign investment limit raised
Earlier in July, TV Today’s board approved raising the foreign investment limit in the company by foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) up to 26%. The company also raised the investment limit for non-resident Indians (NRIs) by up to 24% of the paid-up capital.