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Construction : Deals | July 2012 | Source : Construction Update

PE fund may pick up stake in RMW

According to a filing in stock exchange, an unknown global private equity fund has shown interest in picking upa "substantial" minority stake in Reliance MediaWorks (RMW)'sfilm and media services division for Rs 605 crore. Both the parties are said to have signed a term sheet in this regard which stipulate a 90-day exclusivity agreement. This means the two parties will negotiate with each other exclusively for the period and the deal could still be called off after that. RMW may use part of the money to repay debt while the rest will be used as growth capital for the film and media services division if a deal takes place, reports indicate. The company operates theatre chain BIG Cinemas and television production company BIG Synergy. It posted a loss of Rs. 213.68 crore in fiscal 2012 compared with a loss of Rs. 80 crore in the previous year. The company has been scouting for funds for a while now, according to industry experts.
 
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