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Eros International, STX Entertainment Close Merger to form Eros STX Global
Friday 31 July 2020

Indian entertainment company Eros International plc (NYSE: EROS) and US-based STX Filmworks, Inc. have closed a merger-of-equals transaction, the companies said.

The newly-combined company will migrate in the coming weeks to trade on the NYSE under the symbol ESXI and will operate under the name Eros STX Global Corp.

The company will continue to be domiciled in the Isle of Man, and headquartered in both Burbank, California, USA and Mumbai, Maharashtra, India.

Under the deal, Eros International issued contingent value rights to the former stockholders of STX Entertainment in the merger.

The CVRs will be settled in A ordinary shares of Eros STX on a date between 75 days and six months after the effective time of the merger.

According to Eros STX, the combination will drive long-term growth in diversified markets and provide a more consistent and stable revenue profile: Eros STX will benefit from diversified underlying sources of revenue and consumers with a truly global media and consumer entertainment play, building a powerhouse between East and West.

Eros STX said it has a unique capability to present film and episodic libraries and pipeline of original content to a growing global audience through multi-year output deals, strategic alliances and the market leading Eros Now streaming platform.

In India, Eros STX will continue to have a leading box office presence and one of the largest and most valuable libraries of Indian language films.

In China, the company will benefit from and expand upon some of the most comprehensive business and creative relationships in the industry.

In the United States and the rest of the world, it will utilise its data-driven production, marketing and distribution system innovations.

Eros STX capital structure includes USD 110m of incremental equity, with an additional USD 15m to be completed within the next 90 days, from new and existing global investors including TPG, Tencent, Hony Capital and Liberty Global.

The combined company is expected to generate approximately USD 50m in annual run-rate operating synergies.

Unique multi-channel distribution model: Multi-channel distribution across pay-TV via Showtime, digital distribution via Netflix, Hulu, Amazon and Eros Now, India's premier Subscription Video on Demand platform for Indian content.

Eros STX Global is a global entertainment company that acquires, co-produces and distributes films, digital content and music across multiple formats such as theatrical, television and OTT digital media streaming to consumers around the world.
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Date Published: 31/07/2020

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