Reliance MediaWorks, a part of Reliance Group, has completed the transaction for sale of its multiplexes business to Carnival Cinemas Ltd.
The entire sales proceeds of multiplex business have been duly received by RMW from Carnival Cinemas, and will be used to reduce Reliance Capital's leverage by ₹700 crore, through a combination of transfer of debt of RMW and infusion of cash proceeds.
RMW had announced sale of its multiplex business to Carnival Cinemas in December last year, and the transaction has now been closed upon receipt of all approvals. The deal excludes real estate owned by RMW at IMAX Wadala and other properties, which are intended to be separately monetised for about ₹200 crore. “The transaction is in furtherance of Reliance Capital's stated objective of focusing on its core financial services businesses, reducing exposure to non-core investments in the media and entertainment sector, and reducing overall debt," said Sam Ghosh, Executive Director, Reliance Captial Ltd.