Network 18 Media & Investment Ltd announced their exit from the multiplex business through the sale of its stake in Stargaze Entertainment to Carnival Films. The amount was however not disclosed.
According to media reports, the venture capital arm of Network 18, Capital18 Fincap is said to have entered into an agreement with Carnival Films to sell its stake in multiplex operator Starglaze Entertainment. The multiplex operator goes by the brand name ‘Glitz Cinemas’. Some reports state that Capital18 had 75% stake in stake in the venture.
Capital18 in a filing to the BSE said that the transaction is expected to be completed within the current financial year and will result in a profitable exit for the company.
With its inception in 2008, Glitz Cinemas currently operates in 8 cities across India.
Carnival Films in the previous month acquired Big Cinemas from Anil Ambani-led Reliance Group. This deal was estimated to be worth Rs.700 crores and consequently the biggest in this sector.