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Reliance to acquire 24.92% of Balaji Telefilms at Rs. 413.28 crore

Energy and petrochemicals major Reliance Industries Limited (RIL), which has interests in the digital and media segments, today said it proposed to acquire 2.52 crore equity shares of entertainment major Balaji Telefilms Limited (BTL), constituting 24.92 percent of the company, for Rs. 413.28 crore.
 
In a filing made to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), RIL said the acquisition would be made through subscription to a preferential issue of equity shares by BTL to it for a cash consideration of Rs. 164 per share.
 
The investment was approved by RIL's Board of Directors at its meeting held here today.
 
BTL, along with its subsidiaries, is engaged in production of television content for broadcasters and production and distribution of films. It also operates an over-the-top subscription video-on-demand platform focusing on original and exclusive Indian digital content.
 
BTL was incorporated on November 10, 1994 and its equity shares are listed on BSE and the National Stock Exchange (NSE). It has a paid-up share capital of Rs. 15.2 crore (as on March 31, 2017) and generated a turnover of Rs. 421 crore, Rs. 293 crore and Rs. 343 crore in FY 17, FY 16 and FY 15, respectively.
 
The filing also pointed out that RIL inter alia is engaged in the telecom, digital and media businesses. "This investment in content production (including digital content) is in line with RIL's commitment to invest and grow in telecom, digitial and media businesses," it said.
 
According to RIL, no government or regulatory approvals are expected to be required for the investment. The transaction is subject to BTL's shareholders' approval and regulatory compliances and other conditions precedent and is expected to be completed in 45 to 60 days.
 
In a separate filing to the stock exchanges, Balaji Telefilms said its Board of Directors had approved the issue of 2.52 crore shares to RIL. It said it proposed to hold an extraordinary general meeting of the company on August 18 to seek approval of the proposal.
 
BTL Chairman and well-known actor Jeetendra Kapoor said, "We welcome Reliance Industries Limited as a partner in our growth journey towards becoming the preferred content producer for the Indian diaspora across all means of video consumption and across all geographies. This investment is a vote of confidence to the company’s strategic move to own our IP and our viewers."
 
Mr. Kapoor's wife Shobha Kapoor is the managing director of the company and their daughter Ekta Kapoor is joint managing director, while their son and actor Tusshaa Kapoor is a director.
 
Axis Capital Limited acted as the sole investment banker for the transaction, a press release from BTL added.
 
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