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Entertainment Network (India) Ltd, the company that houses the radio vertical 'Radio Mirchi' of Times of India Group, is set to sell its stake in the OOH Company to the parent firm Bennett, Coleman & Company Ltd (BCCL).

In a filing with BSE, ENIL has informed that the Board of Directors of the Company has approved the sale of its entire equity stake in Times Innovative Media Ltd. (TIM) to BCCL. ENIL currently holds 83.44% of stake in TIM.

TIM was incorporated in October 2005, which carries the business of event management and out-of-home (OOH) media. While the Event Managment business was transfered to Alternate Brand Solutions (India) Limited (ABSIL), one of the companies of ENIL, in January 2008, the OOH business in now being sold to BCCL.

BCCL will be acquiring the stake by means of a cash consideration of Rs 45 crores and a commitment to repay ENIL's loan to TIM. As per the terms arrived upon for the agreement BCCL also “absorb the obligations under the financial guarantees provided by ENIL on account of TIM as on the date of the proposed transaction,” says the filing with BSE.

As on July 08, 2010 the loans advanced by ENIL to TIM and the financial guarantee obligations of ENIL on account of TIM were Rs. 42.50 crores and Rs. 31.23 crores respectively.

According to the filing, “The sale is subject to the execution of a satisfactory Sales and Purchase Agreement between ENIL & BCCL. BCCL has reserved the right to effect the purchase either directly or together with its other affiliates or through its other affiliates.”