Paramount to offload 13% in Indian TV biz to Reliance
Under the deal, that came just over a month after the failed $10 billion merger of rivals Zee and Sony, Reliance and its affiliates will hold 63.16 per cent in the combined entity that will house two streaming services and 120 television channels
Paramount
NEW DELHI: Paramount Global has agreed to sell its 13 per cent stake in its Indian TV business to Reliance Industries for Rs 4,286 crore, the Indian firm said on Thursday.
In a stock exchange filing, Reliance said it has signed a binding agreement with two subsidiaries of Paramount Global to acquire 13.01 per cent equity stake of Viacom 18 Media Private Limited held by Paramount Global.
Similarly, in a filing on the US Securities and Exchange Commission (SEC), Paramount Global said the closing of the transaction is subject to the satisfaction of certain customary conditions, including receipt of applicable regulatory approvals, as well as the completion of a previously announced joint venture involving Reliance, Viacom18 and Star Disney.
“After the closing, Paramount will continue to license its content to Viacom18,” it added.
In its stock exchange filing, Reliance Industries Ltd (RIL) said Viacom18 is a material subsidiary of TV18 Broadcast Ltd. The company currently holds compulsorily convertible preference shares of Viacom18 representing 57.48 per cent equity stake on a fully diluted basis.
Post the completion of this transaction, the company’s equity stake in Viacom18 will increase to 70.49 per cent on a fully diluted basis. Earlier in February, Walt Disney Co and Reliance Industries had announced the signing of binding pacts to merge their media operations in India to create a Rs 70,000 crore behemoth.
Under the deal, that came just over a month after the failed $10 billion merger of rivals Zee and Sony, Reliance and its affiliates will hold 63.16 per cent in the combined entity that will house two streaming services and 120 television channels. Disney will hold the remaining 36.84 per cent, the companies had said.
As part of the transaction, the media undertaking of Viacom18 would be merged into Star India Pvt Ltd (SIPL) through a court-approved scheme of arrangement.