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.
IMG-R was started in 2010 as a joint venture between IMG and RIL, is now a leading firm working to promote and develop sports, entertainment and fashion in India.
Mukesh Ambani-led Reliance Industries Limited will be increasing its stake in IMG-Reliance Ltd, by buying out IMG Worldwide LLC from the sports management business. The transaction will cost RIL not more than Rs 52.08 crore, the oil-to-telecom conglomerate said in a regulatory filing. “IMG Reliance Limited is a joint venture between IMG Worldwide and the Company. IMG Singapore Pte. Ltd., a wholly-owned subsidiary of IMG, holds 50% of the share capital of IMG-R,” RIL said. RIL said that the acquisition is expected to be completed during this calendar year.
“The Company has entered into definitive agreements to acquire the shares held by IMG Singapore Pte. Ltd in IMG-R, for a cash consideration not exceeding INR 52.08 Crore. 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.
IMG-R was started in 2010 as a joint venture between IMG and RIL, is now a leading firm working to promote and develop sports, entertainment and fashion in India. IMG-R has worked towards developing these segment 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.
The most recent accolade of IMG-R has been winning the global mandate to market Cricket Australia’s ‘Virtual Inventory’ rights, after a competitive bid process in November this year. “IMG-Reliance will be the exclusive global agency for Cricket Australia to bring on board brand partners for the virtual inventory that features in the television coverage available to viewers outside of Australia, including the Indian subcontinent,” IMG-R said after winning the rights.
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.