| MUMBAI, July 18
MUMBAI, July 18 India's Reliance Mediaworks
, controlled by billionaire Anil Ambani, has agreed to
raise 6.05 billion rupees ($109.7 million) from a foreign
private equity fund, a source with direct knowledge of the
development told Reuters.
"We have signed a term-sheet agreement...to sell a
substantial minority stake in the company's film and media
services division," said the source, without giving further
details about the foreign investor.
The company, with a market capitalisation of about $50.8
million, plans to use the funds to primarily cut debt and for
Reliance Mediaworks has three main businesses - a theatre
distribution operation under BIG Cinemas, a TV production unit
under BIG Synergy, and a film and media services segment.
The film and media services business includes motion picture
processing, image enhancement and restoration, animation and
visual effects, and is attracting business from overseas.
Reliance Mediaworks had said in December that this division
will contribute 60 percent to overall revenue in 2012-13 from
about 40 percent then.
The company also expected its overall orderbook for this
division to more than double to 2 billion rupees in the current
fiscal year ending March 31, 2013.
Reliance Mediaworks had said in January that its board
approved separating its exhibition and film and media services
businesses into subsidiaries.
Shares of the company, which ended 3.2 percent lower on
Tuesday, have plunged more than 14 percent since the start of
this year compared with an 11 percent fall in the benchmark
($1 = 55.1450 Indian rupees)
(Reporting by Nandita Bose; Editing by Gopakumar Warrier)