Mukesh Ambani-led Reliance Industries has agreed to acquire 5 per cent stake in media firm Eros International, through a subsidiary, for $15/share.
"The deal valuation represents an 18 per cent premium to last closing price of the NYSE-listed domestic company," the companies said in a joint statement on Monday.
Reliance and Eros International Media, part of Eros International have agreed to partner to jointly produce and consolidate content from across the country.
"The parties will equally invest up to Rs 1,000 crore in aggregate to produce and acquire Indian films and digital originals across all languages," the statement said.
Eros group chief executive and managing director Jyoti Deshpande would be stepping down after 17 years to head the media and entertainment business at Reliance as president at the RIL chairman's office.
Deshpande will lead the company's initiatives in media and entertainment to organically build and grow businesses around the content ecosystem such as broadcasting, films, sports, music, digital, gaming, animation, as well as integrate Reliance's existing media investments such as Viacom18 and Balaji Telefilms with a view to build, scale and consolidate the fragmented USD 20-billion domestic media and entertainment sector.
She will start her role at Reliance from April, but will continue to remain as a non-executive director on the board of Eros.
Kishore Lulla will resume his position of group chairman and CEO of Eros.
"We are pleased to join hands with Eros, as it will bring further synergies into our plans, making for a win-win partnership," RIL chairman Mukesh Ambani said.
Commenting on the partnership, Lulla said, "I am very pleased that Eros is partnering with Reliance in its entertainment journey with several synergies across technology, content and digital with Eros Now. We look forward to collaborating and growing as we continue to make new strides on the digital and content forefronts. I am confident that together, we can make a meaningful difference."
