Sun TV picks up 48.9 pc stake in Red FM

New Delhi, Aug 30: Sun TV Network Ltd today said it has picked up 48.9 per cent stake in Red FM through its subsidiary - South Asia FM Ltd (SAFL) - to further its FM Radio broadcasting business in the North, West and East Indian markets.

As part of the transaction, SAFL has taken up a 48.9 per cent beneficial interest in Red FM by acquiring equity of the holding companies of Red FM at par, said a statement.

The promoters of Red FM would continue to hold 51.1 per cent stake in it.

In lieu of this, the promoters of Red FM - Usha Reddy, Arjun Rao - along with NDTV, through their investment company A H Multisoft and NDTV News respectively, have subscribed to 35 per cent of the enlarged equity of SAFL.

The balance equity of SAFL continues to be held by its existing shareholders.

SAFL owns 23 FM radio licenses all over India (except the Southern states of Tamilnadu, Karnataka, Andhra Pradesh and Kerala).

It currently has two operational radio stations at Jaipur and Bhubaneshwar.

Red FM operates three radio stations in Mumbai, Delhi and Kolkata.

Enam Securities Pvt Ltd acted as the sole advisor to the company for this transaction.

UNI