Reliance MediaWorks (RMW) and Carnival Cinemas has signed definitive agreements for sale of RMW's multiplexes business to Carnival Cinemas in the largest ever deal in the sector in India. The proposed 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.
The transaction will reduce Reliance Capital's leverage by approximately Rs 700 crore, through a combination of transfer of debt of RMW and infusion of cash proceeds. The deal excludes real estate owned by RMW at IMAX Wadala and other properties, which are intended to be separately monetized for an approximate value of Rs 200 crore.
Reliance MediaWorks was recently delisted from the stock exchanges and has been part of the investment portfolio of Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group.
