Saturday, 18 April 2020

STX Filmworks, Inc. | Merger of STX Filmworks, Inc. with Eros International PLC


NO
HEADINGS
                                                       DETAILS                                                      
1.     
Sector
Media and Entertainment           
2.     
Signing Date
18 April 2020
3.     
Name of Client
STX Filmworks, Inc. (“STX Filmworks”)  

STX Filmworks, Inc. develops, produces, and distributes movies. STX Filmworks, Inc. is based in the United States.
4.     
Name of Bidder
STX Filmworks and its shareholders (including TPG, Liberty Global and Hony Capital)
5.     
Name and Description of Target
Eros International PLC (“Eros PLC”, NYSE listed) having an Indian listed subsidiary i.e. Eros International Media Limited (“Eros India” listed on BSE)
Target Country: USA
Description of Target: Eros PLC is a global Indian entertainment company that acquires, co-produces and distributes Indian films across all available formats such as cinema, television and digital new media. Eros PLC was the first Indian media company to list on the New York Stock Exchange and continues to have India presence through Eros India.
6.     
Deal Description
Advised STX Filmworks, in relation to the stock-for-stock merger agreement, pursuant to which STX will merge with a newly formed subsidiary of Eros PLC and will survive such merger as an indirect wholly owned subsidiary of Eros PLC. As part of the transaction, few of STX shareholders will be undertaking pipe investment into Eros PLC. The shareholders of STX International will ultimately receive shares of Eros International Plc as merger consideration. The transaction will create the first publicly traded, independent content and distribution company (under the name Eros STX Global Corporation) with global reach and unique positions in the United States, India and China.
7.     
Total Consideration
This transaction will result in the merged entity being created which, as per recent press reports, will have a USD 1 billion enterprise.
Consideration in cash: USD 125 million; and
Consideration in kind: Share swap
8.     
Team Members
The core team comprised Mayank Singh (Partner), Sanchit Agarwal (Principal Associate) and Akarshita Dhawan (Associate), with assistance from the following members:

Securities law aspects: Arindam Ghosh (Partner); Abhishek Dadoo (Principal Associate); Anvita Mishra (Associate)
Competition law aspects: Sagardeep Rathi (Partner); Pranjal Prateek (Principal Associate); Alisha Mehra (Associate)
Litigation: Tomu Francis (Partner); Raj Panchmatia (Partner)
Indirect tax law aspects: Dinesh Agarwal (Executive Director); Pranay Sahay (Senior Associate)
Intellectual Property law aspects: Aadheesh Nargolkar (Partner); Smriti Yadav (Partner)
Due Diligence: Harsh Walia (Partner); Shobhit Chandra (Principal Associate); Aditya Ayachit (Associate); Tanmaya Negi (Associate); Yashodhara Chauhan (Associate)
9.     
Role of Firm
The Firm advised and assisted the Client on the following: (i) India level implications of the deal from a Takeover Code perspective; (ii) competition law aspects; (iii) diligence and finalisation of the transaction documents to the extent it related to Eros India; and (iv) assistance on certain  indirect tax issues, intellectual property and data privacy related aspects.
10.  
Press Links





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