RIL to acquire 65% stake in Indian Film Combine for Rs 1,105 crore
17 February 2018
Reliance Industries Ltd (RIL), through its wholly-owned subsidiary Reliance Industrial Investments and Holdings Ltd (RIIHL), will acquire a 65-per cent stake in Maker Group's Indian Film Combine for Rs1,105 crore.
RIIHL will be acquiring 65 per cent of the current paid-up equity share capital of IFC from the existing shareholders for Rs1,105 crore.
This includes 20 per cent from Mauritian arm of Xander Group, based in USA for Rs340 crore and 45 per cent from entities belonging to the promoter group of RIL for Rs765 crore.
Maker Group will continue to hold the remaining 35 per cent of IFC. The acquisition is expected to be completed by 31 May 2018, RIL said in a statement to BSE.
The acquisition from the promoter group entities of RIL is on arms-length basis and at the same the samevaluation at which equity shares of IFC are being purchased from the Xander Group.
RIL is currently building a convention centre, a retail mall and office space at BKC, Mumbai.
"Together with the aforesaid IFC project, RIL will create the city's most attractive retail and entertainment destination which will complement its world-class convention centre. RIL would be able to derive commercial and operational synergies to enhance its shareholder value,'' it said.
The valuation has also been independently confirmed by Jones Lang LaSalle Property Consultants (India) Pvt Ltd (JLL) and Ernst & Young Merchant Banking Services Pvt Ltd (E&Y), it added.
Ahead of the announcement, RIL shares ended down 1.32 per cent at Rs921.70.