MUMBAI: Sun TV Network’s subsidiary – South Asia FM Ltd (SAFL) has picked up a 48.9 per cent stake in Red FM by acquiring equity of the holding companies of Red FM at par. The promoters of Red FM would continue to hold 51.1 per cent in Red FM.
With a view to to further its FM Radio broadcasting business in the North, West and East Indian markets, South Asia FM has entered into this alliance with Red FM.
In lieu of this, the promoters of Red FM – Usha Reddy, Arjun Rao alongwith NDTV have, through their investment company A. H. Multisoft and NDTV News respectively, 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 Tamil Nadu, 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.