Sun TV Network announced that the company, through its subsidiary South Asia FM (SAFL) has entered into a strategic alliance with Red FM to expand its FM radio broadcasting business in the north, west and east Indian markets.
As part of the transaction, SAFL has taken up a 48.9% beneficial interest 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% in Red FM.
SAFL owns 23 FM radio licenses all over India (except the southern states of Tamilnadu, Karnataka, Andhra Pradesh and Kerala). It currently has two operational radio stations at Jaipur and Bhubaneshwar. Red FM, one of the fastest growing FM Radio Companies in India, operates 3 radio stations in Mumbai, Delhi and Kolkata. It is the number 2 player in two of the largest FM radio markets in India viz. Mumbai and Delhi. This alliance enables Sun TV to boost its presence in the fast-growing Radio market in India, Sun TV said in a statement.