Reliance Industries signs definitive agreement to acquire a 50% stake in IMG-R

Reliance Industries Ltd. (RIL) has entered into definitive agreement to acquire 50 per cent shares held by IMG Singapore Pte. Ltd in IMG Reliance Limited (IMG-R). Reliance will acquire this 50 per cent stakes for a cash consideration not exceeding Rs 52.08 crore.

IMG Reliance Limited (IMG-R) is a joint venture between IMG Worldwide LLC (IMG) and the Company. IMG Singapore Pte. Ltd., a wholly-owned subsidiary of IMG, holds 50 per cent of the share capital of IMG-R.

Post completion of the acquisition, IMG-R will become a wholly-owned subsidiary of the Company and will be rebranded by the Company.

Reliance Industries in a regulatory filing said, "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 Rs 52.08 Crore."

IMG–R is engaged in the business of creation, management, implementation and commercialisation of sporting, fashion and entertainment events in India.

IMG-R had a turnover of Rs 181.70 Crore (including GST of Rs 25.79 Crore), Rs 195.55 Crore (including GST of Rs 28.95 Crore) and Rs 158.26 Crore (including GST of Rs 20.71 Crore); and 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/ regulatory approvals are required for the aforesaid acquisition and the acquisition is expected to be completed during this calendar year. The acquisition does not fall within related party transactions and none of RIL's promoter/ promoter group/ group companies has any interest in the transaction.