Reliance Industries shares: RIL to buy 13% stake in TV18 Broadcast arm Viacom 18 Media for Rs 4,286 cr

Shares of Reliance Industries Ltd are in focus on Thursday morning after the oil-to-telecom major said it will buy 13.01 per cent equity stake (on a fully diluted basis) in Viacom 18 Media from two of Paramount Global's subsidiaries for a total of Rs 4,286 crore. Viacom18 is a material subsidiary of TV18 Broadcast Limited.

In a filing to BSE, RIL said a binding agreement has been entered into today at 1:38 a.m. between the company and two subsidiaries of Paramount Global "to acquire 13.01 per cent equity stake (on a fully diluted basis) of Viacom 18 Media Private Limited (“Viacom18”) held by Paramount Global through its two subsidiaries for an aggregate consideration of Rs 4,286 crore."

At present, RIL  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, RIL's equity stake in Viacom18 will increase to 70.49 per cent on a fully diluted basis.

The acquisition, Reliance Industries said, is not a related party transaction and none of the company’s promoter/promoter group/group companies have any interest in the acquisition.

Reliance Industries said the transaction is subject to regulatory approvals and completion of the transaction envisaged in the media release titled “Reliance and Disney announce strategic joint venture to bring together the most compelling and engaging entertainment bands in India" submitted by the company on February 28.

Shares of Reliance Industries are up 10.61 per cent in 2024 so far. The stock is up 36.34 per cent in the last one year.