 "Reliance to buy out IMG Worldwide from sports management joint venture")
Billionaire Mukesh Ambani's Reliance Industries Ltd (RIL) has agreed to buy out IMG Worldwide LLC from their sports management joint venture for Rs 52.08 crore.
The nation's biggest company by market value, in a stock exchange filing, said it will buy IMG Worldwide's 50 per cent stake in IMG-Reliance Ltd (IMG-R) for no more than Rs 52.08 crore in cash.
RIL will rebrand the company after the closure of the deal.
RIL had formed an equal joint venture with IMG Worldwide, an international sports marketing and management company, 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.
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"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, a wholly-owned subsidiary of IMG, holds 50 per cent of the share capital of IMG-R.
"Post completion of acquisition, IMG-R will become a wholly-owned subsidiary of the company and will be rebranded by the company," RIL 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 RIL on Thursday closed 2.58 per cent higher at Rs 1,993.90 on the BSE.