Subject to regulatory approvals, Reliance hopes to conclude the process by the end of January, but the deal is expected to close by February, the company stated.
According to the report, the merger would give Indian billionaire Mukesh Ambani’s Reliance group more control as Reliance would own 51 percent through a combination of shares and cash, with Disney holding the remaining 49 percent. The deal is expected to close by February, with Reliance aiming to finish the process by the end of January, subject to regulatory approvals.
Percentage of both
Walt Disney and Reliance Industries, India’s most valuable company, signed a nonbinding term sheet to merge their Indian media operations, on December 25, citing sources it did not name. Under the terms of the merger, Reliance would own 51 percent through a combination of shares and cash, with Disney holding the remaining 49 percent, giving Indian billionaire Mukesh Ambani’s Reliance group more control, the report noted. As a result of the merger, Disney would own 49% of the company and Reliance, led by Indian billionaire Mukesh Ambani, would acquire 51% through a combination of cash and shares. This would give Reliance group more authority.
Invest
The proposed deal would create a unit under Reliance’s Viacom18 to take control of Star India through a stock swap, The parties are working on a plan to invest $1 billion to $1.5 billion in the business, it said, without specifying whether this was the total or the amount each would invest. This has caused a user exodus from Disney’s streaming app Hotstar in recent quarters. Since early this year, Disney has been exploring a sale or joint venture partnership for its India business, which includes numerous TV channels.
Reliance and Disney are likely to have an equal number of directors on the board, with at least two representatives each. Additionally, the newspaper stated that at least two independent directors are being considered, but this may alter in the upcoming weeks.
