RMW ties up with foreign equity firm to fund media services division

RMW ties up with foreign equity firm to fund media services divisionReliance MediaWorks (RMW) has tied up with a private equity firm to raise funds for its film and media services division.

The company will raise about Rs. 605 crore for the unit through the foreign investment partner. The company has not disclosed the name of the international private equity firm. The two companies have agreed to keep the agreement exclusive for the next 90 days.

The company said in a statement that "the potential investor has provided an indicative non-binding proposal to acquire a substantial minority stake in Reliance MediaWorks' Film and Media Services division for an investment of Rs 605 crore."

RMW also said that the deal is subject to completion of customary detailed due-diligence, definitive documentation, completion of the process of turning the film and media services business into subsidiary as well as other approvals. RMW focuses on motion picture processing, audio restoration and image enhancement, 3D and digital mastering, among others.

Shares of the company rose 8.57 per cent and were trading at Rs 64 compared to its previous close of the Bombay Stock Exchange (BSE).