Reliance Industries to acquire 65% stake in The Indian Film Combine

Through its subsidiary Reliance Industrial Investments & Holdings

Reliance Industrial Investments & Holdings, a wholly owned subsidiary of Reliance Industries proposes to acquire equity shares of The Indian Film Combine ("IFC"), a company incorporated in 1942. IFC is setting up a drive-in theatre and hospitality precinct comprising of a hotel, a retail mall and a club, built on approximately 12 acres of land in Bandra Kurla Complex (BKC), Mumbai.

RIIHL will be acquiring 65% of current paid-up equity share capital of IFC from the existing shareholders for Rs 1,105 crore (20% from Mauritian arm of Xander Group, Inc. based in USA for Rs 340 Crore and 45% from entities belonging to the promoter group of RIL for Rs 765 Crore). The remaining 35% of IFC continues to be held by the Maker Group. The acquisition is expected to be completed by 31 May 2018.

 

RIL is engaged in construction and development of a convention centre, a retail mall and office space at BKC, Mumbai. Together with the aforesaid IFC project, RIL will create the city's most attractive retail and entertainment destination which will complement its world-class convention centre. RIL would be able to derive commercial and operational synergies to enhance its shareholder value.

The acquisition from the promoter group entities of RIL is on arms-length basis and at the same valuation at which equity shares of IFC are being purchased from the Xander Group.

Powered by Capital Market - Live News