Mukesh Ambani-led Reliance Industries Limited is on the way to increase its stake in the stock market by buying out 50 percent stake in IMG worldwide LLC from the sports management business. The deal will be signed to cost RIL not more than Rs. 52.08 crore, the oil-to-telecom conglomerate said in a regulatory filing.
“IMG-R was started in 2010 as a joint venture between IMG and RIL, is now a leading firm working to promote and develop sports, entertainment, event, media, and fashion in India.” IMG is operated in more than 30 countries and is a part of the Endeavor network. It is a leading entrainment industry in India.
“IMG Reliance Limited is a joint venture between IMG Worldwide and the Company. IMG Singapore Pte. Ltd., a wholly-owned subsidiary of IMG, holds 50 percent of the share capital of IMG-R,” RIL said. RIL will rebrand the company after the closure of the deal.
“The company agreed to enter into definitive accords to acquire the share held by IMG Singapore Pte. Ltd. in IMG-R, for a cash consideration not exceeding Rs, 52.08 crore,” the filing added.
No government and regulatory body approvals are required for the aforesaid acquisition and the acquisition is expected to be completed during this calendar year,” said RIL, adding in a statement that the acquisition does not fall within related party transactions and none of RIL’s promoter or promoter group companies have any interest in the transaction.
Shares of RIL on Thursday closed 2.58% higher at Rs. 1,993.90 on the BSE.
“IMG-R had a turnover of Rs. 181.70 crore including GST of Rs. 25.79 crore and a net profit was registered total of Rs. 16.35 crore in financial year 2020.”
IMG-R has also worked towards growing its businesses in these fashion and sport segment in India through various ventures, including the Hero Indian Super League, Maharashtra Open. IMG-R also hosts the glamorous event Lakme Fashion week in India. IMG-R has also collaborated with the Basketball Federation of India and all India football presentation.
Click here for more Business News
