Music Broadcast will hold a meeting of the Board of Directors of the Company on 26 July 2019.

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Music Broadcast announced that the company has entered into definitive binding agreement for the acquisition of Reliance Broadcast Network.

The company will acquire 24% of the equity share capital of RBNL on or before 31 July 2019 and (subject to receipt of the regulatory approval from the Ministry of Information and Broadcasting) the acquisition of the entire equity stake of promoters in RBNL (by MBL) will happen after 31 March 2020, i.e. post the expiry of the lock-in period as prescribed under the applicable law.

The transaction is a all cash deal with initial acquisition of 24% equity share capital in RBNL by way of a preferential allotment for a total consideration of Rs. 202 crores and thereafter subject to the receipt of all regulatory approvals, MBL will acquire all of the remaining 75.71% equity stake held by the promoters of RBNL for a consideration which will be derived from a total enterprise value of Rs. 1,050 crores (after making all necessary adjustments, using EBIDTA calculated on the basis of audited accounts for the year ended 31 March 2019).

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Net profit of Music Broadcast rose 12.85% to Rs 18.35 crore in the quarter ended March 2019 as against Rs 16.26 crore during the previous quarter ended March 2018. Sales rose 7.82% to Rs 81.87 crore in the quarter ended March 2019 as against Rs 75.93 crore during the previous quarter ended March 2018.

For the full year,net profit rose 19.14% to Rs 61.62 crore in the year ended March 2019 as against Rs 51.72 crore during the previous year ended March 2018. Sales rose 8.87% to Rs 324.71 crore in the year ended March 2019 as against Rs 298.25 crore during the previous year ended March 2018.

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The Board of Music Broadcast has approved the following -

a. Proposed investment, the terms of which are being finalised, in Reliance Broadcast Network (“RBNL”) by way of a preferential allotment for a 24% equity stake for a consideration of Rs 202 crore; and

b. On receipt of all regulatory approvals, proposed acquisition of the entire stake held by the promoters of RBNL basis an enterprise value of Rs 1050 crore after making adjustment for variation, if any, on the basis of audited accounts for the year ended 31 March 2019.

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