Mukesh Ambani-led
Reliance Industries Ltd. signed a binding agreement on Thursday with two subsidiaries of Paramount Global to acquire the latter's stake in Viacom18 Media Pvt. Ltd. for an aggregate consideration of ₹4,286 crore, Reliance's exchange filing stated.
Viacom 18 is a material subsidiary of TV18 Broadcast Ltd. On completion of this transaction, Reliance's equity stake in Viacom18 will increase to 70.49% on a fully diluted basis.
Currently, Reliance Industries holds Compulsorily Convertible Preference Shares of Viacom18, representing a 57.48% equity stake.
This is not a related-party transaction and is subject to regulatory approvals. It is also subject to completion of the Reliance Industries-Disney merger announced on February 28 this year.
Paramount Global will continue to license its content to Viacom18 even after the completion of the deal, the filing stated.
Reliance Industries will own 16.34% in the combined entity, while Viacom18 will have a 46.82% stake.
Shares of Reliance Industries fell 2.6% on Wednesday, in-line with the overall market sell-off to close at ₹2,873.20. The stock has gained 26% over the last 12 months.
Note To ReadersDisclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
