Last Updated:November 14, 2024, 18:45 IST

Reliance Industries holds a 16.34 per cent stake in the JV, while its step-down unit Viacom18 holds 46.82 per cent and Disney the rest 36.84 per cent. Nita M Ambani will be the Chairperson of the JV, with Uday Shankar as Vice Chairperson providing strategic…Read More

The JV is home to the most iconic and engaging media brands in India across TV and digital platforms. The combination of Star and Colors on the television side and JioCinema and Hotstar on the digital front will provide an extensive choice of content across entertainment and sports to viewers in India and globally. Representational image/Reuters

Reliance Industries Limited, Viacom 18 Media Private Limited, and The Walt Disney Company announced on Thursday that following the approval by the NCLT Mumbai, Competition Commission of India and other regulatory authorities, the merger of the media and JioCinema businesses of Viacom18 into Star India Private Limited has become effective. In addition, RIL has invested ₹ 11,500 crore (~US$ 1.4 billion) into the JV for its growth. The JV has allotted shares to Viacom18 and RIL as consideration for the assets and cash, respectively.

The transaction values the JV at ₹70,352 crore (~US$ 8.5 billion) on a post-money basis, excluding synergies. At the closing of the transactions noted above, the JV is controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.

Nita M Ambani will be the Chairperson of the JV, with Uday Shankar as Vice Chairperson providing strategic guidance to the JV.

The JV is home to the most iconic and engaging media brands in India across TV and digital platforms. The combination of Star and Colors on the television side and JioCinema and Hotstar on the digital front will provide an extensive choice of content across entertainment and sports to viewers in India and globally.

The formation of the JV will herald a new era in India’s entertainment industry for consumers. This unique joint venture of Reliance and Disney brings together the companies’ content creation and curation prowess, and world-class digital streaming capabilities along with a digital-first approach that will help the JV deliver unparalleled content choices at affordable prices to Indian viewers and the Indian diaspora globally.

The JV will be one of the largest Media & Entertainment companies in India with pro forma combined revenue of approximately ₹26,000 crore (~US$ 3.1 billion) for the fiscal year ended in March 2024. The JV operates over 100 TV channels and produces 30,000+ hours of TV entertainment content annually. The JioCinema and Hotstar digital platforms have an aggregate subscription base of over 50 million. The JV holds a portfolio of sports rights across cricket, football and other sports.

The Competition Commission of India (CCI) approved the transaction on 27 August 2024, subject to compliance with certain voluntary modifications offered by the parties. Apart from the CCI, the transaction has been approved by antitrust authorities in the EU, China, Turkey, South Korea and Ukraine.

Speaking about the JV, Mukesh D Ambani, Chairman & Managing Director of Reliance Industries Limited, said, “With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer will ensure unparalleled content choices at affordable prices for Indian viewers. I am very excited about the JV’s future and wish it all the success.”

“This is an exciting moment for our two companies, as well as for India’s consumers, as we create one of the top entertainment entities in the country through this joint venture,” said Robert A Iger, Chief Executive Officer, The Walt Disney Company. “By joining forces with Reliance, we are able to expand our presence in this important media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services.”

Uday Shankar, Co-Founder of Bodhi Tree Systems, said, “James and I are excited to be partners in this journey to disrupt the media and entertainment industry in India. The new organisation is committed to delivering an unprecedented level of creativity, disruption and new-age consumer experience. As media consumption continues to move to an integrated TV-digital ecosystem, the merger of Viacom18 and Star India offers a unique opportunity to reorient the industry to better serve diverse cohorts of consumers across the country. Together, we aim to build India’s largest integrated media platform which will deliver unparalleled experiences in innovative and exciting ways.”

The JV will be spearheaded by three CEOs who will lead the company into a new era of ambition and disruption. Kevin Vaz will head the entertainment organisation across platforms. Kiran Mani will take charge of the combined digital organisation. Sanjog Gupta will lead the combined sports organisation. Together, they will leverage their unique strengths to cultivate a bold, transformative vision that challenges the status quo and sets new standards in the industry.

In a separate transaction, RIL has bought out Paramount Global’s entire stake of 13.01% in Viacom18 for ₹4,286 crore. As a result, Viacom18 is owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd and 15.97% by Bodhi Tree Systems, on a fully diluted basis.

About Reliance Industries Limited

Reliance is India’s largest private sector company, with a consolidated revenue of INR 10,00,122 crore (US$ 119.9 billion), cash profit of INR 1,41,969 crore (US$ 17.0 billion) and net profit of INR 79,020 crore (US$ 9.5 billion) for the year ended March 31, 2024. Reliance’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail and digital services.

Currently ranked 86th, Reliance is the largest private sector company from India to be featured in Fortune’s Global 500 list of World’s Largest Companies for 2024. The company stands 45th in the Forbes Global 2000 rankings of ‘World’s Largest Public Companies’ for 2023, the highest among Indian companies. Reliance has been recognised in Time’s list of the 100 Most Influential Companies of 2024, marking the only Indian company to have achieved this honour twice. Reliance is the top-ranked Indian company and the only one in the top 100 on Forbes’ World’s Best Employers 2023 list. Additionally, it is featured among LinkedIn’s Top Companies 2023: The 25 Best Workplaces To Grow Your Career In India (http://ril.com).

About The Walt Disney Company

The Walt Disney Company, together with its subsidiaries, is a leading diversified international family entertainment and media enterprise that includes three business segments: Entertainment, Sports and Experiences. Disney is a Dow 30 company and had an annual revenue of $88.9 billion in its fiscal year 2023.

About Bodhi Tree Systems

Bodhi Tree Systems is a strategic investor in consumer technology opportunities in Southeast Asia, with a particular focus on India. The entity is a platform of James Murdoch’s Lupa Systems and Uday Shankar and was established in 2021 to explore and invest in Southeast Asia and the Middle East. In addition to media and education, Bodhi Tree expects to invest in other consumer technology sectors such as healthcare that represent significant opportunities but suffer from a lack of capital and innovation. Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, is an investor in Bodhi Tree Systems.

The market began the day with a surge of 547 points, pushing the index to 93,903 points.

As investor confidence grew, the market continued its upward momentum, reaching a peak of 94,217 points with a gain of 816 points at one point.

By 12 PM, the KSE-100 index had risen by 799 points, reaching 94,154 points.

This follows a strong start to the business week, where the index had already crossed the 94,000 mark.

Ealier, Pakistan Stock Exchange (PSX) on Wednesday entered a consolidation phase after breaking many all-time high records in recent weeks and closed with a modest gain of 131 points on investor interest mainly in second and third-tier stocks.

The KSE-100 index oscillated between the high of 93,804 points and low of 92,943 points, before closing the day with some recovery, driven by a robust car sales data and easing fears of a mini-budget announcement. It came despite hefty stock selling by foreign investors.

In the morning, the market was pulled down to the intra-day low by profit-taking, however, it soon recovered owing to buying interest in selected stocks, which took the index into the positive territory.

“Stocks showed some recovery on the back of second and third-tier shares because of their strong valuations,” said Ahsan Mehanti, MD of Arif Habib Corporation.

“Upbeat data of car sales that surged 112% year-on-year in October and FBR’s assurance to the IMF about dropping contingency measures for a mini-budget played the role of catalysts in positive close at the PSX,” he said.

At the close of trading, the benchmark KSE-100 index recorded an increase of 130.86 points, or 0.14%, to 93,355.43.

Topline Securities, in its review, wrote that trading activity remained strong throughout the day, with 806 million shares changing hands, valuing at Rs31 billion.

It said the market exhibited a consolidation phase, with the KSE-100 index reaching the peak of 93,804 and dipping to the low of 92,943, before settling at 93,355, up 131 points.

Notably, consistent buying by mutual funds supported the market in the recent rally.

The index was boosted by positive contribution from Mari Petroleum, Lucky Cement, The Searle Company, Engro Corp and Pakistan Oilfields, which collectively added 461 points.

Conversely, Oil and Gas Development Company, Fauji Fertiliser Company and Meezan Bank experienced some profit-taking, resulting in a combined loss of 213 points, Topline added.

In its research report, AHL commented that Wednesday’s trading session was unpredictable, with the KSE-100 index consolidating within the 92,000-94,000 range.

A total of 40 stocks rose, while 57 declined. Among the top contributors to the index gains were Mari Petroleum (+7.07%), Lucky Cement (+2.89%) and The Searle Company (+10%), it said.

Among corporate developments, Bank Alfalah (-0.01%) withdrew its buy offer for Samba Bank (-9.13%) after Saudi National Bank terminated the process of selling its 84.51% shareholding in Samba Bank, AHL reported.

In addition, Rousch Power approved a negotiated settlement to end its power purchase agreement, which was originally due to expire in 2032, and receive payments till the end of December 2024, AHL added.

JS Global analyst Mubashir Anis Naviwala wrote that initially the market experienced some consolidation, with the index reaching the intra-day low of 92,943.

However, he said, bulls took charge and the market began to recover, hitting the high of 93,803 points. The KSE-100 index ultimately closed at 93,355, gaining 131 points.

Overall trading volumes increased to 807.1 million shares compared with Tuesday’s tally of 792.9 million. The value of shares traded during the day was Rs31.7 billion.

Shares of 450 companies were traded. Of these, 196 stocks closed higher, 191 fell and 63 remained unchanged.

WorldCall Telecom was the volume leader with trading in 43.3 million shares, losing Rs0.01 to close at Rs1.26.

It was followed by Waves Home Appliances with 33.2 million shares, gaining Rs0.90 to close at Rs8.79, and Pakistan Refinery with 31.5 million shares, remaining unchanged at Rs26.88.

During the day, foreign investors sold shares worth a net Rs1.39 billion, according to the NCCPL.

Mumbai: Benchmark Sensex declined by 110 points in a see-saw trade on Thursday, marking its third straight session of losses amid continued FII selling, disappointing quarterly results and soaring inflation.

Benchmark BSE Sensex dropped 110.64 points or 0.14 per cent to settle at 77,580.31. During the day, it dropped 266.14 points or 0.34 per cent to 77,424.81.

Broader NSE Nifty dropped by 26.35 points or 0.11 per cent to close at 23,532.70, extending its losing streak to the sixth day.

From the 30-share Sensex pack, Hindustan Unilever, NTPC, Nestle, IndusInd Bank, Power Grid, Adani Ports, Tata Motors and Bajaj Finserv were the major laggards.

Reliance Industries, Kotak Mahindra Bank, Tech Mahindra, Mahindra & Mahindra and HDFC Bank were among the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,502.58 crore on Wednesday, while Domestic Institutional Investors (DIIs) bought shares worth Rs 6,145.24 crore, according to exchange data.

Wholesale price inflation rose to a four-month high of 2.36 per cent in October as prices of food items, especially vegetables, and manufactured goods turned dearer, showed the government data released on Thursday.

Retail inflation breached the Reserve Bank’s upper tolerance level, soaring to a 14-month high of 6.21 per cent in October mainly on account of rising food prices.

In Asian markets, Tokyo, Shanghai and Hong Kong settled lower while Seoul ended in the positive territory.

European markets were trading higher. The US markets ended on a mixed note on Wednesday.

Global oil benchmark Brent crude dipped 0.06 per cent to USD 72.24 a barrel.

Sensex tanked 984.23 points or 1.25 per cent to settle at 77,690.95 on Wednesday. Registering its fifth day of decline, the Nifty tumbled 324.40 points or 1.36 per cent to 23,559.05.

Equity markets will remain closed on Friday for Guru Nanak Jayanti.

Clare Smyrell

‘How much did that just cost me?’

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‘Verging on discrimination’

James Gilmartin

Pension “megafunds” are set to be created to help unlock billions of pounds of investment in UK businesses and infrastructure.

Rachel Reeves will use her first Mansion House speech on Thursday as chancellor to outline what is billed as the biggest pensions shake-up in decades.

Consolidating assets into a handful of funds run by professional fund managers will allow them to invest more in infrastructure, supporting economic growth and local investment on behalf of the UK’s 6.7 million public servants, the government says.

It predicts the move could deliver around £80bn of investment in new businesses and critical infrastructure.

The reforms, which will be introduced through a new Pension Schemes Bill next year, involve consolidating defined contribution (DC) schemes, as well as pooling assets from 86 local-government pension scheme authorities.

There are already around 60 different multi-employer schemes, such as the Independent Schools’ Pension Scheme, each investing savers’ money into one or more funds.

The government will consult on setting a minimum size requirement for these funds.

Treasury analysis indicates that pension funds start to return greater productive investment levels once the size of assets they manage reaches between £25 to £50bn – when they are better placed to invest in a wider range of assets.

Bigger pensions funds of greater than £50bn in assets can harness further benefits, including the ability to invest directly in large-scale projects at a lower cost, it added.

Megafunds, which will mirror schemes in Australia and Canada, will need to meet rigorous standards to ensure they deliver for savers, such as needing to be authorised by the Financial Conduct Authority (FCA), the government said.

The Local Government Pension Scheme in England and Wales has assets that are currently split across 86 administering authorities. By 2030, they are forecast to be worth around £500bn.

DC pension schemes are expected to manage £800bn worth of assets by then.

Ms Reeves’s speech takes place amid warnings that changes to employers’ national insurance (NI) contributions could cause job losses.

The chancellor said: “Last month’s Budget fixed the foundations to restore economic stability and put our public services on a firmer footing. Now we’re going for growth.”

Deputy prime minister Angela Rayner said: “This is about harnessing the untapped potential of the pensions belonging to millions of people, and using it as a force for good in boosting our economy.”

Jon Greer, head of retirement policy at wealth manager Quilter, said: “If managed carefully, this consolidation could open new doors for UK pensions, enabling access to infrastructure and private equity investments with strong return potential.

“However, the success of this will depend heavily on the availability of new infrastructure projects to invest in.

“Large funds need substantial, reliable projects to generate returns, but the market may struggle to offer enough of these opportunities, especially in the infrastructure sector.”

Tom Selby, director of public policy at AJ Bell, said: “Conflating a government goal of driving investment in the UK and people’s retirement outcomes brings a danger because the risks are all taken with members’ money.”

He added: “There needs to be some caution in this push to use other people’s money to drive economic growth. It needs to be made very clear to members what is happening with their money.”

Tom McPhail, director of public affairs at consultancy the Lang Cat urged caution, saying: “Is it safe to assume that all schemes will want to invest in the opportunities they’ve outlined?”

A retail tycoon branded the ‘Del Boy billionaire’ has rescued dozens of Homebase stores as the DIY retailer prepares to go into administration.

Homebase has engaged consultants to find a new buyer, putting over 100 stores and thousands of jobs across the UK at risk, according to The Times.

The DIY and garden chain, which employs around 3,600 staff across 130 locations, has been a staple since its first branch opened in 1979.

Now, Chris Dawson, owner of The Range homeware stores, has bought 70 Homebase outlets as part of an administration deal.

This acquisition secures 1,600 jobs, though around 1,000 frontline and office roles remain uncertain if a buyer isn’t found for the remaining sites.

Mr Dawson is also said to be negotiating a purchase of the Homebase brand and website, in a deal estimated at £30 million.

Sainsbury’s bought ten shops from the troubled retailer in August, planning to convert them into large supermarkets. The grocery giant first created the Homebase brand in the 1970s, before selling it off in 2006.

Homebase owners Hilco Capital brought in consultants after the company reported a loss of £84.2 million in the year to 1 January 2023.

Managing director Damian McGloughlin wrote to suppliers in August saying the business was “behind where we planned to be” and that an “active sale process” to seek new investment was underway.

It is understood that talks have now taken place with Kingfisher and popular bargain retailer B&M, neither resulting in a deal.

Hilco acquired the company in 2018 for £1 after a disastrous 18-month tenure under Australian conglomerate Wesfarmers.

After sacking the senior management team and making a raft of unpopular changes in-store, the multi-national company made an estimated net loss of £1bn in just a year and a half.

If no deal is struck from ongoing negotiations, the loss of Homebase would mark a fresh blow for the struggling British high street. The past few years have seen the closures of The Body Shop, Wilko, Carpetright and Paperchase, as reports show that an average of 38 stores are closing a day in 2024.

Homebase CEO Damian McGloughlin said:“It has been an incredibly challenging three years for the home and garden improvement market.

“Against this backdrop, we have taken many and wide-ranging actions to improve trading performance including restructuring the business and seeking fresh investment.

“These efforts have not been successful and today we have made the difficult decision to appoint Administrators.”

New Delhi: Vodafone Idea has reduced its losses to Rs 7,176 crore in the July-September quarter of the current financial year from Rs 8,738 crore in the same quarter last year. Revenue from operations in the reporting period rose marginally by 2 per cent year-on-year (YoY) to Rs 10,932 crore.

On a sequential basis, the loss has widened from Rs 6432 crore posted in the preceding June quarter. Meanwhile, revenues improved 4 per cent quarter-on-quarter, aided by the recent tariff hikes undertaken by all private operators.

The company earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter increased to Rs 4,550 crore in the second quarter. This compares with Rs 4283 crore in the last year quarter.

The Telco’s average revenue per user (ARPU), a key indicator of financial performance, improved to Rs 166 in the quarter compared to Rs 154, up 7.8 per cent on a sequential basis, following the tariff hike.

The company said its capital expenditure in the first half of 2024-25 was Rs 2,130 crore and the figure for the second half of the financial year would go up to Rs 8,000 crore. Vodafone Idea CEO Akshaya Moondra said, “Post the successful capital raise, we kick-started our 4G expansion drive on an accelerated trajectory. We expanded 4G data capacity by 14 per cent and 4G population coverage by 22 million, and consequently our 4G speeds improved by 18 per cent.

In parallel, we worked on the closure of long-term capex contracts and recently awarded capex deals worth $3.6 billion to three global partners Nokia, Ericsson and Samsung for the supply of network equipment over the next 3 years, he explained.

“On the debt raise, we remain engaged with our lenders for tying up debt funding towards the execution of our network expansion with planned capex of Rs 50,000 crore to 55,000 billion over the next 3 years,” he added.