Reliance MediaWorks to sell Imax Wadala1 min read . Updated: 04 Aug 2015, 02:53 PM IST
Reliance MediaWorks has completed the sale of its multiplexes businesses to Carnival Cinemas
Mumbai: Reliance MediaWorks Ltd, a part of Anil Ambani-controlled Reliance Capital, is looking to sell some of its real estate properties, including Imax Wadala, for ₹ 200 crore and reduce its liabilities.
Imax Wadala is a multiplex at Bhakti Park near Mumbai.
Reliance MediaWorks, part of Anil Ambani group, has also completed the sale of its multiplexes businesses to Carnival Cinemas Ltd, the company said in a statement on Tuesday. The sale was announced in December last year.
“The deal excludes real estate owned by Reliance MediaWorks at Imax Wadala and other properties, which are intended to be separately monetised for an approximate value of ₹ 200 crore," according to the statement.
Referring to the Carnival deal, Reliance Capital said the entire sale proceeds will be used to reduce the company’s liabilities of approximately ₹ 700 crore through a combination of transfer of debt of Reliance MediaWorks and infusion of cash proceeds.
“We are happy to announce closing of this transaction with Carnival Group, which will reduce our overall leverage by approximately ₹ 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," said Sam Ghosh, executive director at Reliance Capital.
The transaction takes forward 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, Ghosh said.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay High court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.