Reliance finalises acquisition of Eros Int’l stake

Reliance finalises acquisition of Eros Int’l stake
Rebecca Hawkes
| 08 August 2018


India’s Reliance Industries has concluded the purchase of a 5% stake in entertainment provider Eros International, following customary approval processes.

eros intl logo 22 Feb 2018“Reliance has acquired 3,111,088 newly issued A ordinary shares from Eros which represents 5.0% of Eros’ current issued and outstanding ordinary share capital on a pro forma basis. The purchase price was $15.00 per share, which represents a total cash consideration of $46.6 million,” the companies said in a statement.

Goldman Sachs & Co acted as financial advisor to Eros International in the transaction, which was first announced in February 2018.

Reliance is India’s largest private sector company, with a consolidated turnover of INR 430,731 crore (US$ 63.3 billion) and net profit of INR 36,075 crore (US$ 5.3 billion) for the year ended 31 March 2018.

Among the assets already controlled by Mukesh Ambani-controlled Reliance Industries is the Viacom18 TV network and the disruptive mobile broadband operator Reliance Jio.

With its investment, Eros International plans to significantly increase its content slate and build a competitive advantage for its over-the-top (OTT) video platform Eros Now.

The parties said they would invest up to INR10 billion each to produce and acquire Indian films and digital originals across all languages, following the transaction.
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