Reliance Industrial Investments To Acquire IFC
Reliance Industrial Investments and Holdings Limited ("RIIHL or the Company"), a wholly owned subsidiary of Reliance Industries Limited ("RIL") proposes to acquire equity shares of the Indian Film Combine Private Limited ("IFC"), a company incorporated in 1942. IFC is setting up a drive-in theatre and hospitality precinct comprising of a hotel, a retail mall and a club, built on approximately 12 acres of land in Sandra Kurla Complex (BKC), Mumbai.
RIIHL will be acquiring 65% of current paid-up equity share capital of IFC from the existing shareholders for Rs 1,105 Crore (20% from Mauritian arm of Xander Group, Inc. based in the USA for Rs 340 Crore and 45% from entities belonging to the promoter group of RIL for Rs 765Crore). The remaining 35% of IFC continues to be held by the Maker Group. The acquisition is expected to be completed by May 31, 2018.
RIL is engaged in construction and development of a convention centre, a retail mall and office space at BKC, Mumbai. Together with the aforesaid IFC project, RIL will create the city's most attractive retail and entertainment destination which will complement its world-class convention centre. RIL would be able to derive commercial and operational synergies to enhance its shareholder value.
The acquisition from the promoter group entities of RIL is on an arms-length basis and at the same valuation at which equity shares of IFC are being purchased from the Xander Group. The valuation has also been independently confirmed by Jones Lang LaSalle Property Consultants(India) Private Limited ("JLL") and Ernst & Young Merchant Banking Services Private Limited("E&Y").