MUMBAI: Last week, TV Today's board approved the sale of its Radio segment-Oye FM. On 13 February, TV Today Network Ltd informed BSE that the Company had entered into a non-binding memorandum of understanding with ENIL (Entertainment Network India Limited).

Commenting on the M&A, ENIL managing director and CEO Prashant Panday told Radioandmusic.com, "It fits into ENIL’s expansion plans under Phase III."

He also confirmed that ENIL will participate in the Phase III auctions. Panday said, "The acquisition is only a piece of the overall expansion strategy. We will continue to participate in Phase III auctions. The maximum limit imposed under Phase III is 56 frequencies."

After the committee meeting, TV Today Network Ltd had informed BSE that the Committee of senior officials at a meeting held on February 13, 2015, noted that the Company had entered into a non-binding memorandum of understanding with Entertainment Network (India) Limited, in relation to the proposed sale of seven radio stations to Entertainment Network (India) Limited subject to fulfilment of the contractual obligations (which may be agreed between the parties) and receipt of all necessary regulatory approvals including permissions from the Ministry of Information and Broadcasting, Government of India.

ENIL's Radio Mirchi has 32 stations, which means that if the M&A takes place; it will add seven more stations to its network. This will help ENIL to add more than one station in cities like Mumbai, Delhi and Kolkata.

A few days ago, ENIL had informed that the Board of Directors of the Company at its meeting held on February 10, 2015, inter alia, has approved the constitution of a Committee of Directors to explore, negotiate and conclude M&A opportunities in the FM broadcasting space. During that time, a spokesperson from Radio Mirchi had confirmed that they were in talks with many players.

However, this is not the first time that TV Today Network Limited (TVTN) has sold it radio stations to other media networks. In 2006, TVTN promoter, Living Media, sold the FM radio business under brand Red FM to a consortium of investors and later Kalanithi Maran's Sun Network bought a stake in the company.