Eros International, STX Filmworks to combine into global entertainment major

Mumbai: Entertainment major Eros International and STX Filmworks on Saturday said that they have entered into a definitive stock-for-stock merger agreement to create the first “publicly traded, independent content and distribution” company with global reach and unique positions in the US, India and China.

Accordingly, the combined company will be called Eros STX Global Corporation with $125 million of incremental equity.

It will boast a strong and revamped capital structure and superior liquidity position at close with $264 million of pro forma net debt, $195 million of pro forma cash balance and $120 million of available revolver capacity as of December 31, 2019, the statement said.

“The combined company, which following the consummation of the transaction will be publicly traded on NYSE, will possess a strong management team led by highly experienced executives from both entities,” the statement said. In terms of transaction, STX Entertainment will merge with a newly formed subsidiary of Eros International and will survive as a wholly owned subsidiary of Eros International.

“The stock-for-stock, merger-of-equals transaction calls for the combined company to utilize Eros International’s existing dual-class share structure. Eros B Ordinary Shares which will continue to be owned by the Eros International founder group will retain their 10:1 voting rights while Eros Ordinary Shares will carry one vote per share,” the statement said. (IANS)

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