Jagran Prakashan to acquire Radio City

New Delhi: Jagran Prakashan Limited (JPL), which publishes 12 newspapers including its flagship brand Dainik Jagran, is set to enter the radio space with the acquisition of Media Broadcast Private Limited (MBPL)'s Radio City 91.1 FM.

The JPL board, which approved the acquisition on Tuesday, informed the exchanges that the deal would be funded by internal accruals. The investment is partly for purchase of equity and partly for replacement of loans of sellers.

Mahendra Mohan Gupta, chairman and managing director, JPL said that radio business in India is expected to grow at a compounded annual growth rate of 18 per cent in the coming years. "The deal will catapult JPL into leadership position in the radio industry and enable the company to benefit from the rapid growth in radio advertising. Acquisition of Radio City further consolidates the our position as India's leading media and communications group. The radio business will complement our print, outdoor, activation and digital businesses and enable deeper inroads with advertisers both at national and local levels," he added.

Apurva Purohit, chief executive officer of Radio City 91.1 FM, said: "Jagran Prakashan has entered into an agreement to acquire Radio City 91.1 FM, subject to the approval of the ministry of information and broadcasting. This augurs well for all the stake holders. Both Jagran and Radio City have been pioneers and leaders in their respective space and this partnership will help augment the growth aspirations of the brand. We look forward to exciting times ahead."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.