Network18 Media & Investments Ltd today announced the exit from multiplex business by divesting its stake in Stargaze Entertainment to Carnival Films for an undisclosed sum.
Network 18’s venture capital arm Capital18 Fincap said it has entered into an agreement with Carnival Films Private Limited to divest stake in multiplex operator Stargaze Entertainment, which operates multiplexes under the brand name of ‘Glitz Cinemas’.
“Capital 18 is a majority shareholder at Stargaze and the transaction, expected to be completed within the current financial year, will result in a profitable exit for Capital18,” the company said in a filing to the BSE.
With this stake sale to the south India-based company, Carnival Cinemas will now be the majority stake holder in Stargaze.
Last month, Carnival acquired Big Cinemas from Anil Ambani-led Reliance Group for an estimated Rs 700 crore, the biggest ever in this sector.
Started in 2008, Glitz Cinemas currently operates in 8 cities across India.
In May last year, RIL’s board approved funding of up to Rs 4,000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network 18 Media & Investments Ltd (NW18), including its subsidiary TV18 Broadcast Ltd (TV18).
The NW18 Group has interests in television, Internet, films, e-commerce, magazines, mobile content and allied businesses.
Its properties include moneycontrol.com, Firstpost.com, Homeshop18.com and Bookmyshow.com, while Colors, CNN-IBN, CNBC TV18, IBN7 and CNBC Awaaz are among its broadcast channels.
Shares of Network 18 Media & Investments Ltd closed at Rs 64.45 per scrip on the BSE, up 4.37 percent from the previous close.