MUMBAI: Entertainment Network (India) Ltd’s (ENIL) board has approved selling its entire stake in its out-of-home (OOH) arm Times Innovative Media to Bennett, Coleman & Co Ltd (BCCL) for Rs 450 million (Rs 45 crore).

ENIL owns 83.44 per cent of Times Innovative Media, which values the company at Rs 540 million (Rs 54 crore).

BCCL will also repay ENIL’s loan to Times Innovative Media and absorb the obligations under the financial guarantees provided by ENIL according to the proposed transaction. As on 8 July, 2010 the loans advanced by ENIL to Times Innovative Media and the financial guarantee obligations stood at Rs 425 million (Rs 42.50 crore) and Rs 312.30 million (Rs 31.23 crore) respectively.

ENIL had engaged Morgan Stanley India to provide a report on transaction rationale and valuation services in relation to the sale / divestiture of its OOH media and outdoor advertising business.