NEW DELHI: Mukesh Ambani-led Reliance Industries Ltd (RIL) has entered into a definitive agreement to acquire 50 per cent shares held by IMG Singapore Pte. Ltd in IMG-Reliance Ltd, for a cash consideration not exceeding Rs 52.08 crore, the company said in a regulatory filing on Friday.
IMG Singapore Pte. Ltd is a wholly owned subsidiary of IMG which holds 50 per cent of the share capital of IMG-R.
Post completion of acquisition, IMG-R will become a wholly-owned subsidiary of RIL and will be rebranded by the company, RIL said.
IMG-R is engaged in the business of creation, management, implementation and commercialization of sporting, fashion and entertainment events in India.
In 2010, RIL had formed a similar joint venture with IMG Worldwide, an international sports marketing and management company to develop, market and manage sports and entertainment in India.
IMG is a global leader in sports, fashion, events and media, operating in over 30 countries, part of the Endeavor network.
IMG-R recorded a turnover of Rs 181.70 crore, Rs 195.55 crore and Rs 158.26 crore; and net profit of Rs 16.35 crore, Rs 19.25 crore and Rs 15.82 crore in FY20, FY19 and FY18, respectively.
“No governmental or regulatory approvals are required for the aforesaid acquisition and the acquisition is expected to be completed during this calendar year,” said RIL, adding that the acquisition does not fall within related party transactions and none of RIL’s promoter or promoter group or even the group companies have any interest in the transaction.