MUMBAI: Jagran Prakashan (JPL) has finally completed the acquisition of Radio City. The company issued a statement on 28 May stating that Information and Broadcasting ministry (I&B) had approved the deal and now, the final approval has taken place.

The board of the company approved the entry into the radio space through the acquisition of Music Broadcast Private Limited (MBPL), which runs 20 Radio City stations across seven cities. MBPL will continue to operate under the same leadership.

Jagran Prakashan chairman and managing director Mahendra Mohan Gupta said, “We are delighted to announce that Radio City has now become a part of Jagran Prakashan Limited. This acquisition marks JPL’s foray into the high growth radio industry and catapults the company to a leadership position in the radio segment of the media industry.”

The statement issued by the company also stated that MBPL is present in the top 14 advertisement revenue generating markets. It also stated that MBPL made revenue of Rs 209.4 crores, in FY 2015 which is 30 per cent more than the previous year. It also stated that it has grown 100 per cent, profit after tax for FY 2015 with Rs 43 crores. Gupta said, “Over the years, Radio City has successfully established a strong foundation and has delivered strong financial results. In FY 2015, Radio City has delivered much higher profits than what we considered while pricing. Further, the price paid is at a significant discounted to the market leader. Therefore, the acquisition becomes extremely attractive for the company.”

Jagran Prakashan is confident that MBPL will add value to the shareholders of the company and generate robust cash flow. JPL already has names like Dainik Jagran, Midday, Naiduniya, I-Next, City Plus and Punjabi Jagran, under them. It is home to 12 newspaper brands with over 75 editions.

Meanwhile, apart from its terrestrial radio stations, Radio City has also started 14 digital radio stations that cater to music lovers across various genres and communities.