MUMBAI: German media conglomerate Bertelsmann has confirmed plans to cut its stake in RTL Group, Europe?s largest commercial broadcaster, by selling shares on the stock exchange but will continue to be the majority shareholder with atleast 75 per cent stake.

Bertelsmann, which holds a stake of 92.3 per cent in RTL with 7.7 percent in free float, will reduce its shareholding in RTL Group by way of a secondary public offering.

The German mass media conglomerate will use the cash from the RTL sale for expansion and acquisitions. Media reports say that the company could raise $2.6 billion to $3 billion from the stake sale.

The company said that the transaction would result in a significant increase of the free float in RTL Group shares, with Bertelsmann maintaining a qualified majority of at least 75 per cent.

RTL?s co-CEOs Anke Schaferkordt and Guillaume de Posch said, "Bertelsmann is and will remain the majority shareholder in RTL Group and will continue to support the strategic development of our business. The reduction of Bertelsmann?s shareholding would significantly increase the free float of RTL Group shares, enabling a more diverse ownership base to share in our success."

RTL Group, which is currently listed on the Luxembourg Stock Exchange and the Euronext Brussels market, intends to apply for a listing on the Frankfurt Stock Exchange.

In India, RTL has a JV with Reliance Broadcast Networks (RBNL) and the Big RTL JV currently owns and operates Big Thrill channel.

MUMBAI: Bertelsmann, the international media group, said that it is taking full ownership of the innovative music rights management company BMG by acquiring the shares currently held by Kohlberg Kravis Roberts & Co. (KKR), and will continue to develop BMG as a wholly owned subsidiary.

The transaction, which is subject to regulatory approval, is scheduled to close during the first half of this year.

The parties have agreed to keep the financial details of the transaction confidential. BMG administers the rights to more than one million songs,including works by such artists as Bruno Mars, Duran Duran, Gossip, Johnny Cash, and Will.i.am. It also represents the master rights (composition and recording) of artists who include Brian Ferry, Nena and Anastacia.

Bertelsmann Chairman & CEO Thomas Rabe said, "This is a great day for Bertelsmann: We are bringing the music home to our group. A few years after our exit from the traditional music business, in association with KKR, we have succeeded in building the world?s fourth-largest music rights management business." Rabe emphasized that KKR has been a good partner. "Our partnership made it possible for BMG to take advantage of consolidation opportunities and to rapidly advance the organic expansion of the business. I thank them for an excellent collaboration."

Taking full ownership of BMG is an important step in putting Bertelsmann?s growth strategy into practice, Rabe explained. "We are happy to have BMG as our own company again. CEO Hartwig Masuch and his team deserve our thanks for the passion and know how they brought to developing a small creative nucleus into a powerhouse that provides the right answers to the challenges of the music industry in this digital age."

KKR Europe Head Johannes Huth said, "Our innovative partnership with Bertelsmann, which combined the professional expertise of a global media company with the financial strength, network and business-building expertise of KKR, was a complete success. We explored new business approaches with Bertelsmann; BMG did pioneering work in the music rights market with its digital, service-focused business approach. The model of a ?growth and build? partnership between a corporate group and KKR is bound to be seen more often in the future."