Paramount to sell its 13% stake in Viacom 18 to RIL

Following the deal’s RIL’s Viacom18 stake will rise to 70.49% on a fully diluted basis

NEW DELHI: Paramount Global has agreed to sell its 13% stake in its indian TV business to Reliance Industries for Rs 4,286 crore, the Indian firm said on Thursday.

In a stock exchange filling Reliance said it has signed a binding agreement with two subsidiaries of Paramount Global to acquire 13.01% equity stake of Viacom 18 Media Private Limited held by Paramount Global.

Similarly, in a filling on the US Securities and Exchange Commission (SEC), Paramount Global said the closing of the transaction is subject to the satisfaction of certain customary conditions, including receipt of applicable regulatory approvals, as well as the completion of a previously announced joint venture involving Reliance, Viacom18 and Star Disney.

“After the closing, Paramount will continue to license its content to Viacom18”, it added.

In its stock exchange filling, Reliance Industries Ltd(RIL) said Viacom18 is a material subsidiary of TV18 Broadcast Ltd. The company currently holds compulsorily convertible preference shares of Viacom18 representing 57.48% equity stake on a fully diluted basis.

Post the completion of this transaction, the company’s equity stake in Viacom18 will increase to 70.49% on a fully diluted basis.

Earlier in February, Walt Disney Co and Reliance Industries had announced the signing of binding pacts to merge their media operations in India to create a Rs 70,000-crore behemoth. Under the deal, that came just over a month after the failed $10 billion merger of and its affiliates will hold 63.16% in the combined entity that will house two streaming services and 120 televisions channels.

Disney will hold the remaining 36.84% the companies had said.