Reliance Industries will buy 13.01% stake in Paramount Global, agreement for Rs 4,286 crore
Reliance: Reliance's exchange filing said the company has signed a total deal worth Rs 4,286 crore for a 13.01% stake. Viacom 18 TV is a subsidiary of 18 Broadcast Limited. Upon completion of this transaction, Reliance's equity stake in Viacom 18 will increase to 70.49%.
Mukesh Ambani-led Reliance Industries Ltd on Thursday signed an agreement with two subsidiaries to buy Paramount Global's stake in Viacom 18 Media Pvt Ltd.
According to Reliance's exchange filing, the company has agreed to pay Rs 4,286 crore for a 13.01% stake in total. 18 Broadcast Limited owns Viacom 18 TV as a subsidiary. Following the conclusion of this deal, Reliance will own 70.49% of the equity in Viacom 18.
Reliance Industries currently owns 18 compulsorily convertible preference shares of Viacom, representing 57.48% of the company's equity. Exchange filings state that it is not a related-party transaction and that regulatory approval is pending. This also depends on the Reliance Industries-Disney merger, which was declared on February 28 of this year, going through.
The filing said that Paramount Global will continue to license its content to Viacom18 even after the deal is completed. Reliance Industries and The Walt Disney Co last month announced the merger of their India TV and streaming media assets, creating a Rs 70,000 crore combined entertainment entity.
Reliance Industries will hold a 16.34% stake in the combined entity, while Viacom18 will hold 46.82%. Shares of Reliance Industries fell 2.6% on Wednesday, closing at Rs 2,873.20 following selling. The stock is up 26% in the last 12 months.
