Reliance Industries and Eros International has announced that RIL, through a subsidiary, has agreed to subscribe to a 5% equity stake in Eros International at a price of $15 per share, which represents an 18% premium to last closing price.
The transaction is subject to customary regulatory and other approvals.
Furthermore, RIL and Eros International Media announced that they have agreed to partner in India to jointly produce and consolidate content from across India. The parties will equally invest up to Rs. 1,000 crores in aggregate to produce and acquire Indian films and digital originals across all languages.
In addition, it was announced that Ms. Jyoti Deshpande, Group CEO and MD of Eros will be stepping down from her Executive role after more than 17 years in Eros and move on to head the Media and Entertainment business at RIL as President of the Chairman’s Office. Ms. Deshpande will start her role at RIL from April 2018, but will continue to remain as a Non-Executive Director on the Board of Eros. Kishore Lulla will resume his position of Group Chairman and CEO of Eros.
Ms. 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, music, digital, gaming, animation etc., as well as 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.
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. We are delighted to welcome Ms. Jyoti Deshpande into the Reliance family and believe that she will not only give wings to our plans but also play a pivotal role in transforming the sector.”
Commenting on the development Kishore Lulla said, “We look forward to collaborating and growing as we continue to make new strides on the digital and content forefronts. I am confident that together, we can make a meaningful difference.”