Even by the staid standards of the regulator, the glacial pace and unspoken reluctance with which Reserve Bank of India (RBI) issued the diktat to supersede the board of Reliance Capital Ltd on 29 November 2021, the development has been little commented upon in the media that ran headlines on it.
Deal called off due to delay in receiving approval from MIB
13 Apr, 2021 - 02:25 PM IST | By indiantelevision.com Team
MUMBAI: Jagran Prakash s Music Broadcast, which owns and operates Radio City, has terminated its deal with Reliance Broadcast Network Ltd (RBNL) for the acquisition of Big FM. The Rs 1,050-crore deal has been called off as both parties have not received approval from the ministry of information and broadcasting (MIB).
It was in 2019 that Music Broadcast entered into definitive agreements with Reliance Capital, Reliance Entertainment Networks, and Reliance Broadcast Network. As the long stop date under the definitive agreements has expired, the acquisition deal between the parties also gets terminated.
The board of Music Broadcast has decided not to pursue the proposed investment in Big FM and the company will be terminating the definitive transaction documents with immediate effect.
On 12 June 2019, Music Broadcast had entered into definitive agreements with Reliance Capital, Reliance Entertainment Networks and Reliance Broadcast Network (RBNL).
The agreement was for initial acquisition of 24% equity share capital by the company in RBNL by way of a preferential allotment. Thereafter, subject to regulatory approvals, acquisition of 75.71% of the equity share capital held by the promoters in RBNL.
The approval for the proposed acquisition in Big FM was subject to clearance/approval from the Ministry of Information and Broadcasting (MIB), Government of India.