MUMBAI (Reuters) - India's Zee media group has agreed to buy television channels and a stake in a radio broadcasting business from billionaire Anil Ambani's Reliance Group in a move that would help the latter cut its debt by about 19 billion rupees ($277 million), the two sides said on Wednesday.
Zee Media Corp Ltd (NS:ZEEN) will initially buy a 49 percent stake in Reliance Group's FM radio business that operates stations in 45 cities and has rights to frequencies for 14 new channels, the two sides said in a joint statement.
Both companies will have a call/put option for the remaining 51 percent stake after a stipulated lock-in period, they said.
In a separate deal, Zee Entertainment Enterprises Ltd (NS:ZEE) will buy two general entertainment channels and four licences to run TV channels from the Reliance Group.
Reliance Capital Ltd (NS:RLCP), which owns the radio and television businesses, will use the proceeds to cut its debt, according to the statement.
($1 = 68.6905 Indian rupees)