Market cheers RIL, Eros partnership, Eros up 5 per cent
Oil to retail conglomerate Reliance Industries is expanding its presence in the media industry aggressively. The company agreed to buy 5 per cent equity stake in Eros International Plc, which is listed on the New York Stock Exchange.
In addition, RIL and Eros India will partner to develop content by jointly investing Rs. 1,000 crore in a JV. The entity will produce and consolidate content from across India in all languages and also acquire films and digital originals.
The stake sale which is subject to regulatory approvals was priced at US$15 per share, an 18 per cent premium to the last closing price of Eros International on NYSE. Also, Jyoti Deshpande, Group CEO and MD of Eros will resign to take up the role of President of the Chairman’s Office to lead RIL’s media business.
Meanwhile, the stock of Reliance Industries was quoting Rs. 924.65 per share, up marginally by 0.57 per cent and Eros International Media was at Rs. 208.60 per share, up Rs. 10.90 or 5.51 per cent on Wednesday.