Reliance, Disney ink non-binding agreement for mega merger
Reliance Industries Ltd (RIL) and Walt Disney Co. have signed a non-binding term sheet in London last week to move ahead with plans to create country’s largest media and entertainment business if the deal goes through. The 51:49 stock and cash merger in favour Mukesh Ambani-led group is expected to get finalised to complete all commercial ratifications and regulatory approvals by February even though Reliance is keen to wrap it up even earier by January end, said people in the know.
Kevin Mayer, a former Disney executive brought back in July by chief executive Bob Iger as an adviser to help him navigate the company’s legacy television business and the ESPN sports network and Manoj Modi, a close confidante of Ambani, were among those present in the meeting. Both have been negotiating for months now to finalise the term sheet document.
Following last week’s signing confirmatory due diligence, valuation exercise by independent valuers will officially begin and legal and tax advisors brought on board.
There is likely to be a 45-60 day exclusivity that can be mutually extended.
The development comes even as the fate of the $10 billion merger between Zee Entertainment Enterprises and Sony Group Corp.’s local unit, the biggest in India media amalgamation announced till date — hangs in balance even after two years.
ET was the 1st to report about the proposed RIL-Disney term sheet in its December 12th edition.
A Disney India spokesperson declined to comment. Mails sent to Reliance on Saturday evening did not generate a comment till press time Sunday.
