Reliance to buy-out IMG’s stake in Joint Entity : Billionaire Mukesh Ambani’s Reliance Industries has agreed to buy out IMG Worldwide from the sports management joint venture IMG-Reliance (IMG-R) for Rs 52 crore. RIL will rebrand the company after the closure of the deal.
RIL had formed 50:50 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 leader in sports, fashion, events and media, operating in more than 30 countries, and is a part of the Endeavor network. IMG Singapore, a wholly-owned subsidiary of IMG, holds 50% share in IMG-R. IMG-R had a turnover of Rs 182 crore and a net profit of Rs 16 crore in FY20.
“No governmental or regulatory approvals are required for the acquisition and it 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.
The nation’s biggest company by market value, in a stock exchange filing, said it will buy IMG Worldwide’s 50% stake in IMG-Reliance Ltd (IMGR) for no more than ₹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-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,” RIL said.
IMG-R had a turnover of ₹181.70 crore (including GST of ₹25.79 crore) and a net profit of ₹16.35 crore in FY20.