Billionaire Mukesh Ambani-led Reliance Industries will acquire 50 per cent shares held by IMG Singapore Pte. in IMG-Reliance (IMG-R), for a cash consideration not exceeding Rs 52.08 crore. Post completion of acquisition, RIL will rebrand sports and fashion joint venture IMG-R as its completely owned subsidiary.
"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 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.
Mumbai-based IMG-R is a joint venture between RIL and IMG Worldwide to develop a platform for promotion and marketing of sports, entertainment and fashion in India. IMG Singapore Pte., a wholly owned subsidiary of IMG, holds 50 per cent stake in IMG-R.
IMG, originally known as the International Management Group, is a global sports, events and talent management company headquartered in New York.
Reliance said that no governmental or regulatory approvals are required for the acquisition of shares in IMG-R and it is expected to be completed during this calendar year. "The acquisition does not come within related party transactions and denied interest of any of its promoter or promoter group companies in the transaction," it added.
The sports arm of RIL, IMG-Reliance, had reported a turnover of Rs 181.70 crore (including GST of Rs 25.79 crore) and net profit of Rs 16.35 crore in the financial year 2019-20. For FY19 and FY18, the company had a turnover of Rs 195.55 crore and Rs 158.26 crore, respectively, while net profit stood at Rs 19.25 crore and Rs 15.82 crore, respectively.
Formed in 2010, IMG-R is one of the single largest firm in sports marketing, licensing and sponsorship in India. In the recently concluded Indian Premier League (IPL) T-20 cricket tournament, IMG-R closed 36 deals across multiple brands and franchises for the ongoing Indian Premier League season, including the Indian cricketing board BCCI and title sponsor Dream11. The marquee deal for IMG-R's growth trajectory for this year has been Dream11's title sponsorship of Rs 222 crore with IPL. This is in addition to facilitating 6 team deals with Mumbai Indians, Chennai Super Kings, Delhi Capitals, Kings XI Punjab, Rajasthan Royals & Sunrisers Hyderabad, as per the information available on the company's website.
IMG-R is also on board with marquee brands like BKT Tires, BoAt, FanCode and Jio through a combination of licensing and sponsorship service. It also exclusively represents six leading cricket talents globally - Rohit Sharma, Jasprit Bumrah, Shreyas Iyer, Shikhar Dhawan and the Pandya brothers Krunal and Hardik.
By Chitranjan Kumar
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