Reliance Industries Ltd (RIL) on Tuesday said it will acquire 5% stake in NYSE listed Eros International for Rs1,000 crore with a view to producing and acquiring Indian films and digital originals across all languages.
RIL and Eros International Plc announced that RIL, through a subsidiary, “has agreed to subscribe to a 5% equity stake” in Eros at a price of $15 per share, the company said in a statement.
Both the companies have agreed to partner in India to jointly produce and consolidate content from across the country.
“The parties will equally invest up to Rs1,000 crore in aggregate (about $150 million) to produce and acquire Indian films and digital originals across all languages,” it said.
It further said that Jyoti Deshpande, Group CEO and MD of Eros International Plc, the parent company of Eros India, will be stepping down from her executive role and move on to head the media and entertainment business at RIL as president of the Chairman’s Office.
Deshpande will start her new role at RIL from April 2018, but will continue to remain as a director on the board of Eros India as well as Eros Plc, it added.
Kishore Lulla will resume his position of Group Chairman and CEO of Eros Plc.
“The parties will equally invest up to Rs1,000 crores in aggregate to produce and acquire Indian films and digital originals across all languages,” it said.
Mukesh Ambani, chairman & managing director, RIL said: “We are pleased to join hands with Eros, as it will bring further synergies into our plans, making for a win-win partnership”.
In her new role at RIL, Deshpande will lead the company’s initiatives in media and entertainment to organically build and grow businesses around the content ecosystem such as broadcasting, films, sports and music.
Besides, she will help integrate RIL’s existing media investments such as Viacom and Balaji Telefilms with a view to build, scale and consolidate the fragmented $20 billion Indian M&E sector. (With Mint)
