Reliance Industries (RIL) rose 1.01% to Rs 2014.05 after the company said that it will acquire 50% shares held by IMG Singapore in IMG-Reliance, for a cash consideration not exceeding Rs 52.08 crore.
IMG Reliance (IMG-R) is a joint venture between IMG Worldwide LLC (IMG) and the Company. IMG Singapore, a wholly owned subsidiary of IMG, holds 50% of the share capital of IMG-R.
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, RIL said in a BSE filing made after market hours on Thursday (24 December 2020).
IMG-R had a turnover of Rs 181.70 crore and a net profit of Rs 16.35 crore in FY2020.
The company further said that 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 have any interest in the transaction.
RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
RIL's consolidated net profit fell 6.6% to Rs 10,602 crore on 25.5% decline in net sales to Rs 1,11,236 crore in Q2 September 2020 over Q2 September 2019.
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