ZEEL to Acquire the TV Business of Anil Ambani led Reliance Group
Dated: November 25, 2016
The Board of Directors of Zee Entertainment Enterprises Limited ("ZEEL") has announced that the board of directors has approved the acquisition of the General Entertainment Broadcasting Business Undertaking of Reliance Big Broadcasting Private Limited, Big Magic Limited & Azalia Broadcast Private Limited, all part of Anil Ambani led Reliance Group Entities through a scheme of demerger and execution of definitive agreements in relation to such proposed acquisition (the "Proposed Transaction").
The TV Broadcasting business of Reliance Group Entities currently comprises two operational general entertainment channels ("BIG Magic" and "BIG Ganga") and 4 other TV licenses. BIG Magic is a Comedy channel catering to Hindi Speaking Markets. BIG Ganga is a leading Bhojpuri entertainment channel catering to audiences in Bihar, Jharkhand and Purvanchal. The channels are available on all major MSOs (Multi Service Operator) and DTH (Direct-To-Home) operators. The General Entertainment TV Broadcasting business undertaking along with its assets, liabilities, licenses, trademarks etc. shall get demerged from "BIG Magic Ltd", "Reliance Big Broadcasting Private Ltd" and "Azalia Broadcast Private Ltd" into ZEEL through a court-approved scheme.
Punit Goenka, managing director & chief executive officer, ZEEL says in a press release, "We are pleased to announce this acquisition which further adds to our expanding universe of general entertainment channels. BIG Magic gives us access to comedy genre enhancing our customer offerings. BIG Ganga, a leading Bhojpuri channel syncs with our strategy of expanding into the regional markets which offers attractive growth potential."
Rajiv Singh, chief operating officer, ZMCL said "We are pleased to announce this acquisition which shall not only be complementary to our current business but accelerate its growth too. We are currently running successfully a bouquet of 11 news and current affair channels and with the addition of 59 radio licenses, we will be reaching out to a much increased audience base and will keep them engaged on different media platforms. This acquisition shall bring about the desired business diversity and will help in achieving the sound financial objectives at an accelerated pace. We are confident that this investment will enhance value for all stakeholders and looking forward towards this exciting journey to take the company to the next level."