Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly-owned unit of Reliance Industries Ltd (RIL), will buy a 65% stake in the Indian Film Combine Pvt. Ltd for Rs1,105 crore, the company said in a stock exchange filing.
RIIHL said it would buy the stake from existing shareholders—20% from the Mauritian arm of US-based Xander Group for Rs340 crore and 45% from entities belonging to the promoter group of RIL—for Rs765 crore.
The remaining 35% continues to be held by the Maker Group. The acquisition is expected to be completed by 31 May.
The Indian Film Combine is setting up a drive-in theatre and hospitality precinct comprising a hotel, a retail mall and a club, built on about 12 acres in Mumbai’s Bandra Kurla Complex (BKC). RIL is also engaged in construction and development of a convention centre, a retail mall and office space at BKC. “Together with the aforesaid IFC (Indian Film Combine) 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,” RIL said in its statement.
“The acquisition from the promoter group entities of RIL is on arms-length basis and at the same valuation at which equity shares of IFC are being purchased from the Xander Group,” RIL added.
The valuation has been independently confirmed by Jones Lang LaSalle Property Consultants (India) Pvt. Ltd and Ernst and Young Merchant Banking Services Pvt. Ltd, RIL added.
RIL shares ended at Rs921.70, down 1.32% on BSE on Friday. The benchmark BSE Sensex index ended at 34,010.76 points, down 0.84%.
Source: Mint