Shibasish Sarkar, group CEO of Reliance Entertainment, is in discussions with Anil Ambani to buy Reliance Entertainment as a management buyout (MBO). Sarkar plans to use funds from his Special Purpose Acquisition Company (SPAC), International Media Acquisition Corp (IMAC), for this deal which could value Reliance Entertainment at Rs. 800 to 1,000 crore. The two parties might sign a non-binding agreement by the year-end, it is learnt, and may conclude the deal by March next year.
Sarkar had filed for a $230 million (Rs. 1,715 crore) initial public offering in the US with a Nasdaq listing. The US Securities and Exchange Commission has approved his proposal. After the release of Reliance Entertainment’s Sooryavanshi (on Diwali this year) and 83 (on Christmas), Shibasish Sarkar is expected to move full-time to his SPAC vehicle (of which he is the chairman and CEO) and announce the MBO.