Mukesh Ambani’s Reliance Industries Limited (RIL) and Eros International PLC (Eros) announced that RIL, through a subsidiary, has agreed to subscribe to a 5% equity stake in NYSE listed Eros at a price of USD15 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 Limited (Eros India) 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 INR 1,000 crores in aggregate (approximately USD150 million) to produce and acquire Indian films and digital originals across all languages.
In addition, it was announced that 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. 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.
In her new role at RIL, Deshpande is expected to lead the company’s initiatives in Media and Entertainment to organically build and grow businesses in Broadcasting, Films, Sports, Music, Digital, Gaming, Animation etc., According to their official release, she would also be expected to integrate RIL’s existing media investments such as Viacom and Balaji Telefilms with a view to build, scale and consolidate the fragmented USD 20 billion Indian M&E sector.
Mukesh Ambani, Chairman & Managing Director, RIL commented,
“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.”
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