Eros International Plc said on Friday it would merge with U.S.-based privately held media company STX Entertainment, sending shares of the Indian film production house nearly 55% higher.
The combined company, Eros STX Global Corp, will remain listed on the New York Stock Exchange, with headquarters in both Mumbai, India and Burbank, California, the companies said in a statement.
Eros and STX Entertainment, which has produced films including “I Feel Pretty” and “The Edge of Seventeen”, did not disclose the financial terms of the deal.
Eros, with a market value of about $258 million, is a film production and distribution company which owns a vast library of Bollywood movies and music and runs its own video streaming service.
Robert Simonds, head of STX, would be the chief executive officer of the combined company, while Eros CEO Kishore Lulla would be executive co-chairman.
The new company is expected to generate about $50 million in operating cost savings within two years of closing the merger, the statement added.
The deal is expected to close in the second calendar quarter of 2020. Citigroup Global Markets and PJT Partners were the financial advisers to Eros and STX Entertainment, respectively.
The combined company is also expected to release about 40 feature length films, including seven sequels, and over 100 original shows in 2020.
Source: Reuters.com