Eros International share prices shoot up by 10% post STX merger
Category: #business  By Nikita Chaurasia  Date: 2020-04-21
  • share
  • Twitter
  • Facebook
  • LinkedIn

Eros International share prices shoot up by 10% post STX merger

Eros International’s share prices shot up by 10% in morning trade on April 20 post the announcement made by the company regarding the all share merger with STX Entertainment from Hollywood, to be able to create a global firm that would equally owned by both the parties.

Apparently, STX Entertainment is a privately held, six years old firm that has done about 34 films, including movies like Bad Moms and Hustler, that have together generated $1.5 billion. Eros mostly pays more focus on the Indian and regional markets by having produced films as well as distributing them via OTT platform.

Eros International Media’s Chief Executive, Pradeep Dwivedi commented that the deal has come during a time when the movie production sector has been closed down in the big global markets due to the coronavirus spread. It will witness STX merging with Eros International, which is NYSE-listed, and also the holding firm of the Eros Group. It will build into an enterprise with a valuation worth $1 billion.

Reportedly, the already existing shareholders of Eros and STX will be holding around 42% of the combined entity each, whereas the remaining share of 15% shall be given to new shareholders.

Dwivedi further added that $125 million as fresh capital has been raised from the existing investors of STX that include firms like Hony Capital, Liberty Global and TPG. The merger between the companies will help bring the talents of both Hollywood and Bollywood together that shall lead to collaborations of various projects along with the joint accessing of China’s mega-market.

The chief executive also said that despite Bollywood usually boasting of large scale projects, in terms of finances, it has a long way to go and even learn from its counterpart.

The merger will also help the firm in giving added boost from a financial perspective as the revamped capital base has resulted in JP Morgan establishing a credit facility of $350 million.

 

Source Credit-https://www.moneycontrol.com/news/business/stocks/eros-international-shares-surge-10-on-merger-with-hollywoods-stx-entertainment-5165231.html

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia    

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More

More News By Nikita Chaurasia

Nigeria gives green light to N8.64bn fund for Siemens electricity deal
Nigeria gives green light to N8.64bn fund for Siemens electricity deal
By Nikita Chaurasia

Federal Executive Council of Nigeria has reportedly authorized President Mohammadu Buhari’s initiative to release €15.21 million (N8,648,081,465.2) or N1.708 billion in onshore and N6,940,081,465.20 in offshore as counterpart funding for t...

Nike aborts plans for Goodyear factory amid COVID-19 outbreak
Nike aborts plans for Goodyear factory amid COVID-19 outbreak
By Nikita Chaurasia

America-based multinational sports apparel company Nike Inc. has reportedly abandoned its plans to develop soles for its Nike Air shoes in Goodyear plant in Arizona. Sources close to the matter stated that the company had initially planned to start t...

Dawn Aerospace launches reusable & sub-orbital test plane Mk-II Aurora
Dawn Aerospace launches reusable & sub-orbital test plane Mk-II Aurora
By Nikita Chaurasia

Dawn Aerospace, a New Zealand-based company, has reportedly revealed a carbon fiber-based reusable test plane Mk-ll Aurora. Sources close to the matter stated that although the aircraft’s hydrogen peroxide and kerosene-based engine is yet to be...