Through investment in Saavn India and transfer of JioMusic to Saavn India
Reliance Industries has entered into agreements on 23 March 2018 to subscribe to 69,787 equity shares of Saavn Media (Saavn India), for cash aggregating to Rs 805.84 crore, resulting in 41.1% equity stake.Additionally, RIL has also entered into an agreement to transfer the music streaming business of RIL, viz. JioMusic, to Saavn India (by way of a slump exchange) in exchange for the issuance of 376,980 equity shares of Saavn India into RIL, thereby giving RIL an effective equity stake of 81.7% in Saavn India.
Saavn is engaged in business of digital streaming of music through its mobile apps and website through Saavn India and Saavn LLC. Saavn LLC will become a wholly owned subsidiary of Saavn India, and an indirect subsidiary of RIL, pursuant to the transaction.
Saavn India, a company incorporated in India on 26 August 2011, had revenues of Rs. 42.4 crore, Rs 29.7 crore and Rs. 16.9 crore in the financial years 2016-17, 2015-16 and 2014-15 respectively. Saavn LLC is a limited liability company formed in the State of Delaware, United States and had revenues of US$ 5.72 million and US$ 3.44 million in the calendar years 2016 and 2015 respectively.
The transaction would accelerate RIL's journey towards having a bouquet of unparalleled media and entertainment services in its portfolio and provide unmatched experience to the users of its digital services business.
The transactions are expected to be completed before 30 June 2018, subject to completion of conditions precedent, and do not require statutory/ regulatory approvals.
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