Eros International Media gains on pact with RIL
Eros International Media has surged 11% to Rs 219 on the BSE in opening deal after the company announced that Reliance Industries (RIL) through a subsidiary, is acquiring 5% equity stake in the NYSE listed Eros International PLC (Eros). Eros is the promoter of Eros International Media. “RIL, through a subsidiary, has agreed to subscribe to a 5% equity stake in NYSE listed Eros at a price of $ 15 per share, which represents an 18% premium to last closing price.
The transaction is subject to customary regulatory and other approvals,” Eros International Media said in a press release. Furthermore, RIL and Eros International Media 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 Rs 10 billion in aggregate (approximately $ 150 million) to produce and acquire Indian films and digital originals across all languages. In addition, it was announced that Ms. 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. At 09:21 am; Eros International Media was trading 7% higher at Rs 212 on the BSE, as compared to 0.42% rise in the S&P BSE Sensex. A combined 1.17 million shares changed hands on the counter on the BSE and NSE so far.