Media firm TV Today said it would not sell its three radio FM stations to Entertainment Network India Ltd (ENIL) and would reorganise the radio business.
The company would approach the Ministry of Information and Broadcasting (MIB) to seek permission to migrate its radio business from phase II to phase III.
As the MIB has decided against sales of radio stations at - Delhi, Mumbai and Kolkata, TV Today had decided to reorganise its radio business and delegated it to a team of senior officials to finalise the modalities.
"The committee of senior officials in their meeting held on December 19, 2016 has approved the initiation of procedural modalities w.R.T proposal of migrating its radio business from phase II to the FM radio phase III, that would enable the company from reorganisation of its radio business," TV Today said in a BSE filing.
On February 13, 2015 TV Today had informed that it has inked a deal to sell seven 'Oye FM' radio stations to ENIL which operates Radio Mirchi.
However, MIB did not approve sale of three stations and the matter went before the Delhi High Court.
"Consequently, the company shall not undertake the agreement to sell, which was entered into with ENIL, for the sale of the three Metro FM Radio stations as was earlier approved by the board in its meeting held on November 13, 2015," TV Today said.
It further added:" Such sale agreement was subject to approval of the MIB or an order from the Delhi High Court allowing the sales of Metro Radio stations whichever is earlier."
The company has proposed "grant of permission agreement for the migration of the three FM Radio stations to phase III" if it gets MIB nod for that.
"The migration fee will involve a total net capital expenditure of Rs 71.36 crore excluding other charges/interest and will be completed within 3 months," it added.
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