Mumbai: Billionaire Mukesh Ambani-helmed Reliance Industries Ltd has agreed to buy out the stake of IMG Worldwide LLC in their sports management joint venture (JV), IMG Reliance Limited, (IMG-R) in a deal worth Rs 52 crore. IMG-R is a joint venture between IMG Worldwide LLC (IMG) and the company.
RIL in an exchange filing on Thursday said IMG-R will become a wholly-owned subsidiary of the company and will be rebranded once the deal is done. IMG Singapore Pte Ltd, a wholly-owned subsidiary of IMG, holds 50% of the share capital of IMG-R, it added.
RIL formed an equal JV with the international sports marketing and management firm, IMG Worldwide LLC, in 2010 to develop, market and manage sports and entertainment in India. IMG is in the business of sports, events, media and fashion, operating in more than 30 countries.
The company represents and manages some of the world’s greatest sports figures and fashion icons; stages live events and branded entertainment experiences annually; and is one of the largest independent producers and distributors of sports media, according to its website.
IMG-R is engaged in the business of creation, management, implementation and commercialisation of sporting, fashion and entertainment events in India.
“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 acquisition, IMG-R will become a wholly-owned subsidiary of the Company and will be rebranded by the Company,” according to RIL’s BSE filing on December 24, 2020.
It added that IMG-R had a turnover of Rs 181.70 crore, Rs 195.55 crore and Rs 158.26 crore; net profit of Rs 16.35 crore, Rs 19.25 crore and Rs 15.82 crore in FY 2020, FY 2019 and FY 2018 respectively.
“No governmental or regulatory approvals are required for the aforesaid acquisition and the acquisition is expected to be completed during this calendar year,” said RIL, adding that the acquisition does not fall within related party transactions and none of RIL’s promoter or promoter group companies have any interest in the transaction.