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Reliance Industries Ltd (RIL) has agreed to buy out IMG Worldwide LLC from their sports management joint venture for ₹52.08 crore.
The nation’’s biggest company by market value, in a stock exchange filing, said it will buy IMG Worldwide’s 50 per cent stake in IMG-Reliance Ltd (IMG-R) 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 is a part of the Endeavor network.
“The company (RIL) has entered into definitive agreements to acquire the shares held by IMG Singapore Pte Ltd in IMG-R, for a cash consideration not exceeding ₹52.08 crore,” the filing said.
IMG Singapore Pte Ltd, a wholly-owned subsidiary of IMG, holds 50 per cent of the share capital of IMG-R.
“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.
“No governmental or regulatory approvals are required for the aforesaid acquisition and the acquisition 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 promoters or promoter group companies have any interest in the transaction.
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