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

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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...

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