Mumbai, Apr 24 (UNI) The Board of Directors of Adlabs Films Ltd (AFL) has approved the proposal for de-merger of the FM radio business to a wholly owned subsidiary by forming a Special Purpose Vehicle (SPV).

The scheme envisages issue of pro-rata shares by the SPV, to all shareholders of AFL in the ratio of two free shares of the SPV, for every one share of AFL.

The demerged company is proposed to be separately listed on the BSE and NSE to provide liquidity to all shareholders.

The above demerger will not have any impact on the share capital of AFL, a statement issued here yesterday said.

The scheme constitutes amalgamation of two subsidiaries of AFL - Entertainment One (India) Ltd and Mukta Adlabs Digital Exhibition Private Ltd with the parent company.

The scheme is subject to all requisite permissions and approvals, including those from shareholders, licensing and regulatory authorities, lenders, stock exchanges, High Courts.

The de-merger will lead to creation of an independent focussed organisation to grow the potentially high growth FM radio business.

It will also enhance financial flexibility to independently rise resources for future growth and substential unloking of shareholder value.

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