RIL on Tuesday said it will acquire 5 per cent stake in NYSE listed Eros International for Rs 10 billion with a view to producing and acquiring Indian films and digital originals across all languages.
Reliance Industries Limited (RIL) and Eros International Plc announced that RIL, through a subsidiary, "has agreed to subscribe to a 5 per cent equity stake" in Eros at a price of $15 per share, the company said in a statement.
Both the companies have agreed to partner in India to jointly produce and consolidate content from across the country.
"The parties will equally invest up to Rs 10 billion in aggregate (about $150 million) to produce and acquire Indian films and digital originals across all languages," it said.
It further said that Jyoti Deshpande, Group CEO and MD of Eros International Plc, the parent company of Eros India, will be stepping down from her executive role and move on to head the media and entertainment business at RIL as President of the Chairmans Office.
Kishore Lulla will resume his position of Group Chairman and CEO of Eros Plc.
" The parties will equally invest up to Rs 10 billion in aggregate to produce and acquire Indian films and digital originals across all languages," it said.
Mukesh Ambani, Chairman & Managing Director, RIL said: "We are pleased to join hands with Eros, as it will bring further synergies into our plans, making for a win-win partnership".
In her new role at RIL, Deshpande will lead the companys initiatives in media and entertainment to organically build and grow businesses around the content ecosystem such as broadcasting, films, sports and music.
Besides, she will help integrate RILs existing media investments such as Viacom and Balaji Telefilms with a view to build, scale and consolidate the fragmented USD 20 billion Indian M&E sector.
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