Eros International shares jump after merging with STX Entertainment

The shares of Indian motion picture company, Eros International Media Limited, jumped around ten per cent on Monday after the company announced an all-share merger with Hollywood’s STX Entertainment to create a global entertainment company.

In a BSE filing made on Saturday, the company informed that its parent company-Eros International Plc and STX Entertainment have entered into a definitive stock-for-stock merger agreement. With this, STX Entertainment will merge with a newly-formed subsidiary of Eros International Plc and will be an indirect wholly-owned subsidiary of the latter. Besides, the shareholders of STX International will receive shares of Eros International Plc as a merger consideration.

Adding to this, the company said that the existing shareholders of Eros & STX will hold 42 per cent of the merged-entity each while; the remaining shares will be with the new shareholders. Moreover, fresh capital of $125 million will be raised from the existing investors of STX Entertainment. Meanwhile, the combined company of the two will be known as Eros STX Global Corporation.

The merger is expected to bring the talents of Bollywood and Hollywood together, apart from, providing financial assistance to the company.

At the time of market closing on Monday, the stock of Eros International Media Ltd was trading at Rs 16.35, up by 9.95 per cent against its previous close of Rs 14.87. Its 52-week high is Rs 76.70 while, its 52-week low is Rs 7.17 on BSE.