Reliance Industries Limited (RIL) witnessed a significant surge in its stock price on Thursday morning, climbing over 1 percent, fueled by the news of an impending acquisition. Paramount Global's decision to divest its 13 percent stake in its Indian TV business to Reliance Industries for a substantial sum of Rs 4,286 crore stirred positive investor sentiment, driving the company's shares to new heights.
On the Bombay Stock Exchange (BSE), Reliance's stock soared by 1.13 percent to reach Rs 2,897.35, while at the National Stock Exchange (NSE), it saw a comparable rise of 1.14 percent, settling at Rs 2,897.05. The market valuation of India's most valued firm reached Rs 19,52,171.94 crore during the early trading session.
The development unfolded through a binding agreement disclosed in a stock exchange filing by Reliance Industries. According to the agreement, two subsidiaries of Paramount Global will offload their 13.01 percent equity stake in Viacom 18 Media Private Limited to Reliance. Paramount Global also affirmed this move in a filing with the US Securities and Exchange Commission (SEC), emphasizing that the transaction's closure hinges upon various customary conditions, including regulatory approvals and the finalization of a joint venture involving Reliance, Viacom18, and Star Disney, previously announced.
Paramount Global clarified that even after the transaction's completion, it would persist in licensing its content to Viacom18. Meanwhile, Reliance highlighted in its filing that Viacom18 stands as a significant subsidiary of TV18 Broadcast Ltd., with Reliance presently holding compulsorily convertible preference shares amounting to 57.48 percent equity stake on a fully diluted basis.
Upon the successful conclusion of this acquisition, Reliance's equity stake in Viacom18 is anticipated to rise substantially to 70.49 percent on a fully diluted basis. This strategic move underpins Reliance's continued expansion within the media and entertainment sector, further consolidating its market presence and influence.
The agreement highlights Reliance's commitment to fortify its foothold in the dynamic Indian media landscape, leveraging strategic acquisitions to enhance its portfolio and deliver sustained value to its shareholders.
Follow us
