Entertainment Network India Limited (ENIL), the operator of Radio Mirchi FM channel has received approval from the information and broadcasting ministry for buying 4 radio stations of TV Today Network , which owns 104.8 FM Oye.
In an interview to CNBC-TV18, managing director Prashant Panday says the company will fund the acquisition from the cash on its books.
"We are at 32 today, so with these four we will go to 36 and what this does is that it strengthens our north-network because this includes basically Amritsar, Patiala, Shimla and Jodhpur, so that strengthens our network," says Panday.
Below is the edited transcript of the interview to CNBC- TV18.
Anuj: Take us through this update and how soon can you close the deal now?
A:This is part of the seven station acquisition that we have been wanting to do and the government has given us an approval for four stations which are not-overlapping as they call it with our present network and this is an approval that they have given and therefore it is for us to consummate in the next few days. The other three stations are still pending with the Ministry but we hope that in the back of the logic that we have given them; at some point in time we will be able to close them as well.
Sonia: So, what will this take your total portfolio to?
A: We are at 32 today, so with these four we will go to 36 and what this does is that it strengthens our north network because this includes basically Amritsar, Patiala, Shimla and Jodhpur, so that strengthens our network.
Sonia: You said in the next couple of days you hope to close this deal, in terms of a revenue runrate you have been clocking around Rs 120 crore of revenues per quarter, once these four stations come into your profile, how much do you think your revenue runrate could be?
A: First of all I cannot tell you any numbers because we are in a silence period so I won’t tell you about any numbers and these are relatively smaller station but like I told you that they strengthen our northern network, so the impact is on the larger network, not just on these four stations.
Anuj: What about the balance three stations?
A: Like I mentioned, we have a convincing argument on this and we believe that the government is keen to look at the matter but we still have to convince them about it, they still aren’t convinced. In any case the matter is also in the Delhi High Court, so we continue to remain hopeful.
Sonia: Just to refresh, how much have you paid for these four stations?
A: We haven’t announced that.
Sonia: Oh, you haven’t given those numbers yet.
A: Not yet.
Sonia: And how do you plan to fund it?
A: Not a problem because we have enough and more cash on our books, so I don’t see that to be a problem.
Anuj: Do you think you will disclose the cost of this acquisition, you are listed company after all?
A: Of course we will at the right time, certainly.
Sonia: And what is the exact cash on ENIL’s books?
A: Again because I can’t give you the figures at the end of the quarter, we haven’t announced them yet but if I remember right, it was about Rs 550 crore the end of the last quarter.
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