Entertainment Network (India) Ltd's (ENIL) board has approved selling its entire stake in its out-of-home (OOH) arm Times Innovative Media to Bennett, Coleman & Co Ltd (BCCL) for Rs 450 million (Rs 45 crore).

Additionally, BCCL will repay ENIL's loan to TIM and also absorb the obligations under the financial guarantees provided by ENIL on account of TIM as on the date of the proposed transaction. 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.

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.

BCCL is the ultimate holding company of ENIL. TIM is a subsidiary of the Company. ENIL currently owns 83.44% of TIM.

ENIL had engaged Morgan Stanley India Company Private Limited to provide a report on transaction rationale and valuation services in relation to the sale / divestiture of its Out-of-Home Media / Outdoor Advertising business.