MUMBAI: Reliance Industrial Limited (RIL) continues expanding its footprint in media and entertainment industry as the acquisition of a 5% stake in Eros International Plc (Eros) has been completed following customary approval processes. The Mukesh Ambani led Reliance and Eros International announced the multifaceted agreement on 20 February.
“Reliance has acquired 3,111,088 newly issued A ordinary shares from Eros which represents 5.0 per cent 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,” Eros International said in a release.
Goldman Sachs & Co. LLC was the exclusive financial advisor to Eros International in this transaction.
According to earlier statements the purchase price was USD 15 per share while the transaction was subject to regulatory and other approvals. Following the announcement, former Eros CEO and MD Jyoti Deshpande became the president of the chairman’s office for the media and entertainment business at RIL.
After the accomplished deal Reliance will become more powerful in media industry on the back of Eros’s Hindi and regional movie slate as well as Eros Now can emerge as a new threat to international OTT players like Netflix, Amazon in the ongoing content battle.
