Reliance to acquire IMG's 50% stake in sports management JV for Rs 52.08 crore
Post the acquisition, IMG-R will become a wholly-owned subsidiary of the company and will be rebranded
Reliance Industries Ltd (RIL) has entered into definitive agreements to acquire sports management company IMG's 50% stake in the joint venture (JV) IMG Reliance for a cash consideration not exceeding Rs 52.08 crore.
Post completion of the acquisition, IMG-R will become a wholly-owned subsidiary of the company and will be rebranded. IMG Reliance Limited (IMG-R) is a joint venture between IMG Worldwide LLC (IMG) and the Company. IMG Singapore Pte. Ltd., a wholly-owned subsidiary of IMG, holds 50% of the share capital of IMG-R.
IMG–R is engaged in the business of creation, management, implementation, and commercialisation of sporting, fashion, and entertainment events in India.
"The Company has entered into definitive agreements to acquire the shares held by IMG Singapore Pte. Ltd in IMG-R, for a cash consideration not exceeding Rs 52.08 Crore," RIL said in a regulatory filing.
IMG-R had a turnover of Rs 181.70 Crore (including GST of Rs 25.79 Crore), Rs 195.55 Crore (including GST of Rs 28.95 Crore) and Rs 158.26 Crore (including GST of 20.71 Crore); and Net Profit of Rs 16.35 Crore, Rs 19.25 Crore, and Rs 15.82 Crore in FY 2020, FY 2019 and FY 2018 respectively.
The company said that no governmental/ regulatory approvals are required for the aforesaid acquisition and the acquisition is expected to be completed during this calendar year.
The acquisition does not fall within related party transactions and none of RIL’s promoter/promoter group/group companies have any interest in the transaction, it added.
IMG Reliance has taken steps to develop sports and fashion through several ventures. These include The Hero Indian Super League, Tata Open Maharashtra (Formerly the Chennai Open) licencing and consulting projects as well as talent representation and management. Contributing to the fashion industry we also host India’s most glamorous event, the Lakmé Fashion Week.
It has signed a 15-year partnership with the All India Football Federation (AIFF), the governing body for football (soccer) in India. As part of the commitment to growing the overall skill base of athletes in India, it has awarded scholarships to Indian students to train at the IMG Academies in Florida, among these athletes are Satnam Singh, now playing for the Texas Legends in the NBA Development League.
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