Reliance Industries Ltd (RIL) has entered into a definitive agreement to acquire 50% shares held by IMG Singapore Pte. Ltd in IMG-Reliance Ltd, for a cash consideration not exceeding ₹52.08 crore, the company said in a regulatory filing on Thursday.
Post completion of the acquisition, IMG-R will become a wholly-owned subsidiary of the Company and will be rebranded by the Company,” RIL said.
Shares of RIL on Thursday were up 2.58 per cent at Rs 1993.90 on the Bombay Stock Exchange.
IMG-R was started in 2010 as a joint venture between IMG and RIL and is now a leading firm working to promote and develop sports, entertainment, and fashion in India. IMG-R has worked towards developing these segments in India through various ventures, including The Hero Indian Super League, Maharashtra Open (Formerly the Aircel Chennai Open). IMGR also host the glamorous event Lakme Fashion Week in India. IMG-R has also collaborated with the Basketball Federation of India and the All-India Football Presentation.
IMG-R had a turnover of Rs 181.70 crore and a net profit of Rs 16.35 crore in the previous financial year. The firm has reported a net profit of Rs 16.35 crore and Rs 19.25 crore in the previous two financial years.
RIL said that no governmental or regulatory approvals will be required for the aforesaid acquisition, adding that the deal does not fall within related party transactions and none of RIL’s promoter or promoter group companies have any interest in the transaction.