- Reliance Industries is in talks to acquire a 50% stake held by IMG-Singapore Pte. Ltd. in IMG-Reliance Ltd.
- With this acquisition, IMG-R will become a wholly-owned subsidiary company and will be rebranded by the company.
- The company said no governmental approvals required for this acquisition.
Mukesh Ambani-owned Reliance Industries is set to acquire 50% stake of IMG-Singapore Pte. Ltd. in IMG-Reliance Ltd., For a cash consideration not exceeding Rs 52.08 crore.
With this acquisition, RIL will rebrand its sports & fashion venture IMG-Reliance as it will become a wholly-owned subsidiary of Reliance Industries.
The joint venture IMG-Reliance is focused on the promotion, marketing of sports, commercialization of sports, organizing entertainment & fashion events in India.
Currently, IMG-Singapore Pte. Ltd., a wholly-owned subsidiary of IMG, holds a 50% stake in IMG-Reliance Ltd.
“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. Post completion of the acquisition, IMG-R will become a wholly-owned subsidiary of the company and will be rebranded by the company,” RIL said in a regulatory filing.
Founded in 1960 by Mark McCormack, IMG or International Management Group is a global sports, events, and talent management company headquartered in New York.
According to the company statement, The deal is expected to be completed by the end of this year. The company also said that no government approvals are required for the acquisition of stakes in IMG-Reliance.
IMG-R had reported a 7% drop in turnover from Rs 195.55 crore in FY19 to Rs 181.70 crore in FY20, Net profit also plunged from Rs 19.25 crore to Rs 16.35 crore.