Reliance Industries Limited (RIL) will buy a 5 percent stake in NYSE listed Eros International Plc (Eros) through a subsidiary.
RIL will pay $15 per Eros International share, which represents an 18 percent premium to Friday's closing price.
The transaction is subject to customary regulatory and other approvals.
Furthermore, RIL and Eros India announced that they have agreed to partner in India to jointly produce and consolidate content from across India. The parties will equally invest up to INR 1,000 crore in aggregate to produce and acquire Indian films and digital originals across all languages.
In addition, it was announced that Jyoti Deshpande, Group CEO and MD of Eros will be stepping down from her Executive role after more than 17 years in Eros and move on to head the Media and Entertainment business at RIL as President of the Chairman's Office.
Deshpande will start her role at RIL from April 2018, but will continue to remain as a Non-Executive Director on the Board of Eros.
Kishore Lulla will resume his position of Group Chairman and CEO of Eros.
In her new role at RIL, Deshpande will lead the company's initiatives in Media and Entertainment to organically build and grow businesses around the content ecosystem such as broadcasting, films, sports, music, digital, gaming, animation etc., as well as integrate RIL's existing media investments such as Viacom and Balaji Telefilms with a view to build, scale and consolidate the fragmented USD 20 billion Indian M&E sector.
Mukesh Ambani, Chairman and Managing Director, RIL said, "We are pleased to join hands with Eros, as it will bring further synergies into our plans, making for a win-win partnership. We are delighted to welcome Jyoti Deshpande into the Reliance family and believe that she will not only give wings to our plans but also play a pivotal role in transforming the sector."
Commenting on the development, Kishore Lulla said, "I am very pleased that Eros is partnering with RIL in its entertainment journey with several synergies across technology, content and digital with Eros Now. We look forward to collaborating and growing as we continue to make new strides on the digital and content forefronts."
Jyoti Deshpande thanked Kishore Lulla and the Eros family for the opportunity.
Jyoti Deshpande commented, "Having worked and associated with Eros group since 1998, it has been an integral part of my professional career. I am delighted that RIL has strategically aligned with Eros, so the association continues. My new assignment at RIL will allow me to push boundaries, set new standards of excellence, assemble a world-class young leadership team and adopt a collaborative approach to architect and execute this ambition in true RIL tradition.
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