Reliance To Buy Out IMG Worldwide From Sports Management Joint Venture
Reliance Industries Ltd. has agreed to buy out IMG Worldwide LLC from their sports management joint venture, IMC-Reliance Ltd.
India’s biggest company by market value said in an exchange filing on Friday it will rebrand the company after buying out IMG Worldwide’s stake, for Rs 52.08 crore.
“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,” the filing said. IMG Singapore Pte Ltd. is a wholly-owned subsidiary of IMG, holding 50% of share capital in IMG-R.
The billionaire Mukesh Ambani-led company had formed an equal joint venture with the international sports marketing and management firm in 2010 to develop, market and manage sports and entertainment in India.
IMG is a global leader in sports, fashion, events and media, operating in more than 30 countries, and is a part of the Endeavor network. IMG-R is engaged in the business of creation, management, implementation and commercialisation of sporting, fashion and entertainment events in India.
“Post completion of acquisition, IMG-R will become a wholly-owned subsidiary of the company and will be rebranded by the company,” the filing said.
IMG-R had a turnover of Rs 181.70 crore (including GST of Rs 25.79 crore) and a net profit of Rs 16.35 crore in FY20.
“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.
Shares of Reliance Industry closed 2.58% higher on the BSE on Thursday.