Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly-owned subsidiary of Reliance Industries (RIL), will acquire a 65 per cent stake in Indian Film Combine for Rs 1,105 crore. RIIHL will acquire the stake from existing shareholders, while the remaining 35 per cent will be held by Maker Group.

The company will buy 20 per cent from Mauritian arm of Xander Group, based in the US for Rs 340 crore and 45 per cent from entities of RIL’s promoter group for Rs 765 crore, RIL said in a regulatory filing.

The acquisition from the promoter group entities of RIL is on arms-length basis and at the same valuation at which equity shares of IFC are being purchased from the Xander Group. The deal is expected to be concluded by May 31, 2018, it added.

IFC is building a drive-in theatre, hotel, retail mall and club on a 12-acre plot at Bandra Kurla Complex (BKC) in Mumbai. The valuation of the deal was independently confirmed by Jones Lang LaSalle Property Consultants (India) and Ernst & Young Merchant Banking Services.

RIL is building a convention centre, a retail mall and office space at BKC, Mumbai.

“Together with the IFC project, RIL will create the city's most attractive retail and entertainment destination which will complement its world-class convention centre. RIL would be able to derive commercial and operational synergies to enhance its shareholder value,” it added.

Before the announcement, shares in RIL ended down 1.32 per cent at Rs 921.70 on a weak BSE, which closed down 0.84 per cent on Friday.

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