National Company Law Appellate Tribunal (NCLAT) has given the green light to Sapphire Media’s acquisition of Big 92.7 FM, the country’s largest radio network. This decision marks a pivotal moment in the domestic media landscape, paving the way for Sapphire Media’s aggressive expansion plans. Big 92.7 FM, owned by Reliance Broadcast Network Limited, boasts an impressive reach, with 58 stations spanning over 1,200 towns and more than 50,000 villages.
The acquisition by Sapphire Media, a company promoted by Aditya Vashistha and Kaithal-based businessman Sahil Mangla, is expected to significantly bolster its presence in the media space. Sapphire Media also operates a national Hindi news channel, India Daily, and is a significant player in the outdoor advertising arena. The NCLAT’s principal bench dismissed the plea filed by Radio Mirchi, Orange FM, and others against the National Company Law Tribunal (NCLT) judgement, which had previously approved Sapphire Media’s resolution plan for Big 92.7 FM.
The bench, comprising Chairperson Justice Ashok Bhushan and (Technical) Member, Barun Mitra, found no grounds to interfere with the NCLT’s order dated May 6, 2024. The bench stated, After considering the submissions, we find no grounds to interfere with the NCLT’s order dated May 6, 2024, and consequently, the appeals are dismissed. They further added, In view of the foregoing discussions and conclusions, we do not find any ground to interfere in the order of NCLT dated 06.05.2024 impugned in the above Appeals. In result, all the Appeals are dismissed.
The tribunal upheld the order of the Mumbai bench of the NCLAT, which had approved Sapphire Media’s resolution plan for Big FM on May 6, 2024. This order was challenged by applicants including Abhijit Realtors and Infraventure and Creative Channel Advertising and Marketing, who filed a batch of five appeals before the tribunal.
The NCLAT confirmed that the challenge mechanism and negotiations conducted by the Resolution Professional complied with Corporate Insolvency Resolution Process (CIRP) Regulations and the Process Note. A base price of ₹240 crore was set for the challenge process, with Sapphire Media emerging as the highest bidder at ₹251 crore in the third round. After negotiations, Sapphire Media revised its bid to ₹261 crore, surpassing competing bids from the Consortium of Abhijit Realtors & Infraventure and ENIL (₹248 crore) and Creative Channel Advertising & Marketing (₹240 crore).
This acquisition is reminiscent of similar historical events in the media industry where major players have expanded their reach through strategic acquisitions. For instance, in 2013, Reliance Industries Limited acquired Network18 Media & Investments Limited, including its subsidiary TV18 Broadcast Limited. This move significantly expanded Reliance’s presence in the media and entertainment industry.
