Reliance MediaWorks Ltd has completed the transaction for sale of its multiplexes business to Carnival Cinemas Ltd.
The deal excludes real estate owned by RMW at IMAX Wadala and other properties, which are intended to be separately monetized for an approx. value of Rs. 200 crore.
image source: reliancemediaworks.com
The company said that it has received the entire sales proceeds from Carnival Cinemas for sale of multiplex business. The fund received by reliance mediaworks will be used to reduce Reliance Capital’s leverage by approx. Rs. 700 crore, through a combination of transfer of debt of RMW and infusion of cash proceeds.
Sam Ghosh, Executive Director, Reliance Capital Ltd., stated, “We are happy to announce closing of this transaction with Carnival Group, which will reduce our overall leverage by approx. Rs 700 crore. This will lower our debt equity ratio to a conservative 1.75:1, amongst the lowest in the financial services sector in India.
The transaction is in furtherance of Reliance Capital’s stated objective of focusing purely on its core financial services businesses, significantly reducing exposure to non-core investments in the media and entertainment sector, and reducing overall debt,” added Mr. Ghosh.