Mumbai, Feb 21: Indian Telecommunications giant, Reliance Industries Limited (RIL) has decided to acquire 5 percent stake in Eros International Plc (Eros), which is an NYSE listed company through a subsidiary.
According to reports, Reliance Industries Limited would pay $15 for each share of Eros International. However, this represents an 18 percent premium of Eros over the closing price on Friday.
The deal is made under conventional statutory norms and other permissions.
Moreover, Reliance Industries Limited and Eros India had announced that they have decided to associate to collectively generate and incorporate content from all over India. Both the firms would invest up to INR 1,000 crore with an equal participation in aggregate to create and acquire Indian films and digital originals among all languages.
It was likewise declared that Jyoti Deshpande, Group CEO and MD of Eros will venture down from her Executive part after over 17 years in Eros and proceed onward to head the Media and Entertainment business at RIL as President of the Chairman's Office.
Deshpande will begin her part at RIL from April 2018, yet will keep on remaining as a Non-Executive Director on the Board of Eros. Kishore Lulla will continue his situation of Group Chairman and CEO of Eros.
In her new position at Reliance Industries Limited, Deshpande will lead the organization's drives in Media and Entertainment to naturally fabricate and develop organizations around the content ecosystem. In addition to this Deshpande would coordinate RIL's current media ventures like Viacom and Balaji Telefilms with a view to manufacture, scale and combine the divided USD 20 billion Indian M&E segment.
Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited 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."