|
MUMBAI:
For cash-strapped Reliance MediaWorks (RMW), a big relief was the
promise of private equity financing. But the Anil Ambani-controlled
film and entertainment services company said Monday it is yet to
conclude the Rs 6.05 billion equity investment deal it had signed
with a private equity firm last year.
The
company clarified that "no definitive agreement has been executed
in respect of the proposed transaction." RMW has not yet named
the private equity firm.
RMW
said it is in talks with the private equity firm to extend the exclusivity
term-sheet period for Rs 6.05 billion investment for a minority
stake in the company. The window expired on 15 October 2012.
The
company and the fund are in the process of extending the exclusivity
period, RMW clarified.
The
company had last year announced that it had signed a term-sheet
with an unnamed PE fund to get an investment of Rs 6.05 billion
for the debt-ridden company, whose entire net worth got eroded due
to consecutive losses.
The
investment was to be made in a subsidiary company of RMW under
which the media services division would be housed.
While
Reliance has declined to divulge the name of the PE firm, a report
in a business daily had speculated that the company was in talks
with L Capital, the private equity arm of the world's biggest
luxury company LVMH.
Meanwhile,
the company which had extended its financial year till 30 September
2012, has narrowed its net loss to Rs 1.16 billion in the quarter
ended 31 December, from Rs 1.5 billion a year earlier.
RMW’s
income from operations for the third quarter remained flat at
Rs 2.02 billion against Rs 2.07 billion a year ago. The company
also contained its expenses in the third quarter at Rs 2.6 billion
against Rs 2.89 billion a year earlier.
RMW
operates three businesses -- film distribution under BIG Cinemas,
TV production unit under Big Synergy, and a film and media services
segment.
The
company's loss from film services division before tax and interest
widened to Rs 386.3 million in the third quarter from Rs 85.23
million a year earlier, while the revenue from this segment declined
to Rs 322.1 million from Rs 534.3 million a year earlier.
Its
loss from theatrical exhibition declined to Rs 220.9 million from
Rs 510.3 million a year earlier. However, its revenue remained
flat at Rs 1.42 billion against Rs 1.47 billion a year earlier.
The
television/film production and distribution business, the only
profitable segment for the company, posted a profit of Rs 98.88
million in the third quarter, up from Rs 17.39 million a year
ago. The division’s revenue grew to Rs 334.4 million in the
third quarter from Rs 128.8 million in the earlier year.
| 
