Reliance Industries (RIL), India’s largest private sector firm with a consolidated turnover of Rs 3,30,180 crore, said on Tuesday that it would pick up a five per cent stake in Eros International Plc, the first Indian media company to list on the NYSE. While RIL did not disclose the aggregate amount, it said the transaction will be at $15 a share, which represents an 18 per cent premium to last closing price. “The transaction is subject to customary regulatory and other approvals,” the company said in a statement.
Both the companies will also partner in India to jointly produce and consolidate content from across the country. “The parties will equally invest up to Rs 1,000 crore in aggregate (approximately $150 million) to produce and acquire Indian films and digital originals across all languages,” the statement said.
It added that Jyoti Deshpande, group CEO and MD of Eros, will step down from her executive role after 17 years in Eros. She will move on to head the media and entertainment business at RIL as president of the chairman’s office.
Meanwhile, Kishore Lulla will resume his position of Group Chairman and CEO of Eros.
Eros International Plc is a global company that acquires, co-produces and distributes Indian films across all available formats such as cinema, television and digital new media.
Commenting on the partnership, Mukesh Ambani, chairman & MD of RIL, said, “We are pleased to join hands with Eros as it will bring synergies into our plans, making for a win-win partnership. We are delighted to welcome Jyoti Deshpande into the Reliance family and believe she will not only give wings to our plans but also play a pivotal role in transforming the sector.”