MUMBAI: Media and communication group Jagran Prakashan has entered into an agreement to acquire the radio network- Radio City, which is run by Music Broadcast Private Limited (MBPL). The acquisition is subject to regulatory approvals, including the Ministry of Information and Broadcasting, and execution of binding agreements.

Jagran Prakashan Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 16, 2014, approved the entry of the Company into the radio industry via acquisition of Music Broadcast Private Limited (MBPL).

Radio City CEO Apurva Purohit said, "Jagran Prakashan has entered into an agreement to acquire Radio City 91.1 FM, subject to the approval of the I&B Ministry. 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."

Jagran Prakashan CMD Mahendra Mohan Gupta said, "The radio business has witnessed significant growth in recent past and is expected to grow at more than 18 per cent CAGR in the coming years, per KPMG FICCI. This deal will catapult JPL into a leadership position in the radio industry and enable the company to benefit from the rapid growth in radio advertising. Acquisition of radio finally consolidates our position as India's leading media and communication group. The radio business will complement our print, outdoor activation and digital business and enable deeper inroads with advertisers both at national and local level."

The acquisition will primarily be funded from internal accruals and investments. The acquisition will not impair Jagran Prakashan's ability to distribute dividends.

MBPL runs the radio network under the name 'Radio City'. The network is present in 20 stations across seven states in the country. It is reported that MBPL's FY 2014 revenues were INR 161.8 Crores and the H1-FY 2014 revenues exhibits a growth of 28 per cent in ad revenues.

Radio City started in 2001, has continued to grow with radio, IPs and digital radio. The network has 15 web radio stations and has a strong digital presence.