Anil Dhirubhai Ambani Group (ADAG), a leading business empire in the Indian nation, is gradually expanding its presence in the media sector.
The financial services division of the group, Reliance Capital, is set to acquire 18% stake in the UTV Software Communications’ business news channel – Bloomberg UTV.
In a statement, Reliance Capital informed “the investment will form part of Reliance Capital Limited’s exposure to the fast growing and high potential media sector.”
Bloomberg UTV enjoys a significant position in the English Business news channel genre on the Indian television. The channel underwent rebranding after strategic collaboration with the global business news leader Bloomberg – from UTVi to Bloomberg UTV – in October, 2009.
Under the leadership of Bloomberg L.P., and the founders of UTV, one of India’s leading integrated media and entertainment enterprises, Bloomberg UTV enjoys the unique benefits of local news gathering, production and distribution expertise, combined with world class financial news capabilities and global reach.
Reliance Capital has existing investments in the Indian media industry through Network18 group (10% stake) and TV Today group (14.02% stake). Besides, Bloomberg has applied with the Foreign Investments Promotion Board (FIPB) for acquiring 15% stake in the channel.
As per the statement, post the reception of the necessary approval for the ownership restructuring of the channel, Reliance Capital will own 18%, Bloomberg would be acquiring 15% with UTV founders, Ronnie Screwvala and his associated retaining the controlling stake of 67% in Bloomberg UTV.