Reliance Industries Acquired 5% Stake in Eros International PLC

Long awaited acquisition of 5% stake of Eros International by Reliance Industries took place on 6th August, 2018.

 

Reliance Industries acquired 5% stake in Eros International

Mukesh Ambani’s Reliance Industries Limited aka RIL is one of the household names in India due to its diverse business verticals. Eros International is one of the leading brands in various fields of Media and Entertainment, production and distribution. The news of acquisition was initially announced on 20th February, 2018. Finally, after all legal formalities and understandings, Reliance Industries acquired 5% stake in Eros International PLC on 6th August, 2018.

Major pointers of this acquisition are as follows.

  • Reliance subscribed to 3,111,088 newly issued ‘A’ ordinary shares of Eros International PLC.
  • Purchase price is $15.00 per share.
  • Total transaction of this acquisition between Reliance and Eros is worth around $46.67 million.
  • 5% stake is on a fully diluted basis.
  • Reliance Industries (RIL) shares gained 1% intraday movement when the news got officially confirmed.
  • Goldman Sachs & Co. LLC worked as an exclusive financial advisor to Eros International PLC in this acquisition process. 

Reliance and Eros both closely belongs to Animation and VFX industry, in terms of education as well as post production facility. In the related news of international acquisition and mergers, London and Canada based Animation & VFX studio Cinesite acquired Trixter, Germany based Visual Effects studio.

 

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