Mukesh Ambani, the owner of Reliance Industries Limited (RIL) and IPL franchise Mumbai Indians, has agreed to buy out IMG Worldwide’s share from the sports management joint venture IMG-Reliance (IMG-R) for INR 52.08 Crores. Reliance will be rebranding the company after the closure of the deal.
RIL had formed an equal joint venture with IMG worldwide for an international sports marketing and management company in 2010 to market and manage the field of sports and entertainment in the country. The joint venture had a turnover of INR 181.70 Crores and a net profit of INR 16.35 Crores in 2020.
IMG is a part of the Endeavor network and a global leader in sports, fashion, events, and media. It has been operating in more than 30 countries. IMG Singapore holds a 50 percent share in IMG-R. Over the years, IMG-R has developed various ventures such as The Hero Indian Super League, Maharashtra Open. IMGR also hosts the glamorous event Lakme Fashion Week in India. The venture has also collaborated with the Basketball Federation of India and the All India Football Presentation.
The most recent honor of IMG-R was winning the Cricket Australia’s Virtual Inventory rights, in November this year. “IMG-Reliance will be the exclusive global agency for Cricket Australia to bring on board brand partners for the virtual inventory that features in the television coverage available to viewers outside of Australia, including the Indian subcontinent,” IMG-R said after winning the rights.
No governmental or regulatory approvals are required for this deal to go through. It is expected to be completed during this calendar year, provided that the acquisition does not fall within related party transactions and none of RIL’s promoter or promoter group companies have any interest in the transaction.