Zee Media Corporation has moved higher by 7 per cent to Rs 36.45, extending its Wednesday’s 10 per cent increase post the company announced that the board approved acquisition of 49 stake in 92.7 BIG FM, the radio broadcasting business of Reliance Broadcast Network Limited (RBNL).
RBNL owns the biggest network of FM radio channels in India 45 operational licenses (issued under Phase II and migrated to Phase III) and 14 new licenses (issued under Phase III).
Under the transaction, RBNL is going to transfer the 45 operational FM channels and 14 new non-operational channels into 2 special purpose vehicles (SPV) Vrushvik Entertainment Pvt Ltd and Azalia Media Services Pvt Ltd, respectively.
Zee Media will acquire 49 per cent stake in each SPV. Both Zee and Reliance group will also have a call/put option for the balance 51 per cent stake in both the SPVs after the stipulated lock-in period.
The acquisition is subject to regulatory approvals of Ministry of Information and Broadcasting and No-objection from lenders of RBNL. The transaction is expected to close in the first half of CY2017.
During the morning trade, the stock was up 5 per cent at Rs 35.90, as compared to 0.48 per cent decline in the S&P BSE Sensex. A combined 2.79 million shares changed hands on the counter on BSE and NSE so far.The company has a market cap amounting to Rs. 1605.39 (Cr).Zee Media is analyzed by Dynamic Levels as the top 500 performing stocks for this quarter among the 1700 stocks which are listed on the NSE. Zee Media is fundamentally strong and is safe for investment, as per Dynamic analysts.
In order to know about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a visit to Zee Media share price history.
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