MUMBAI: Music Broadcast, a Jagran group firm that runs Radio City FM, today said it has acquired the radio division of Ananda Offset for an undisclosed amount on a slump sale basis.
"Under the terms of the agreement Music Broadcast will acquire 100 per cent ownership of the radio division of Ananda Offset, subject to Ministry of Information and Broadcasting approval," the company said in a statement.
Ananda Offset holds a channel licence in Kolkata under the name 'Friends 91.9 FM', which is operational since 2007.
Music Broadcast has had a sales alliance with Ananda Offset since the last five years and the acquisition allows it to enter into the Kolkata market, which is one of the top five markets in the country.
"Through this acquisition, we will expand our reach to 71 per cent of the FM population in India, which currently stands at 62 per cent through 39 stations. A healthy mix of organic and inorganic growth has helped us stay ahead of the curves," Music Broadcast director and Jagran Prakashan president Apurva Purohit said.
The company said the focus is to untap the large potential from national advertisers and the transaction is expected to help in improving the earnings before interest, tax, depreciation and amortisation (EBITDA) margins.