Radio Mirchi-operator looks for M&A deals

Radio Mirchi-operator Entertainment Network India Ltd (ENIL) has constituted a committee of directors to look into merger and acquisition (M&A) opportunities for the company.

“The Board has approved the constitution of a committee of directors to explore, negotiate and conclude M&A opportunities in the FM broadcasting space,” said ENIL, a subsidiary of Times Infotainment Media Ltd. The committee has three directors – Chairman Vineet Jain, Independent Director Ravi Kulkarni and Managing Director & CEO Prashant Panday.

“The Phase-III (auction of radio frequency waves) policy allows for M&A opportunities. However, a lot of uncertainty exists with respect to governmental approvals. Overall, given the Government’s pro-business orientation, we feel a few deals may fructify in the industry,” Panday said in an e-mail response.

The Information and Broadcasting Ministry has said in its information memorandum that private players are unlikely to get any tax incentive for M&As.

The Phase-III auctions are expected to be announced soon, and enable private players to enter newer areas.

“A huge unmet demand exists for FM radio in many cities. Only a limited number of cities with a population of three lakh and above besides State Capitals were taken up for bidding during the first two phases,” a Ministry document states.

The Phase-III policy extends FM radio services to 227 new cities, in addition to the present 86 cities, with a total of 839 new FM radio channels in 294 cities.

It also seeks to cover all cities with a population of one lakh and above with private FM radio channels. In another development last week, the Board of TV Today Network approved the sale of its radio FM business (seven radio stations), and further authorised a committee of directors to negotiate the terms and conditions with potential buyers.

ENIL’s Panday said: “There are many players we are talking to. As and when something develops, we will intimate the stock markets and the Government of India.”