Post the sale, Eros is changing its corporate name to Eros Media World PLC (Eros Media).
In December last year, Eros STX had announced signing of a definitive agreement to sell STX Entertainment to US-based Najafi Companies, ending the two-year old marriage that was announced in April 2020 after Eros and STX Entertainment, the independent studio built and led by Robert Simonds, had decided to merge.
Post the merger, Eros STX was listed on the NYSE with a revamped capital structure including $125 million of incremental equity from new and existing STX equity investors like TPG, Hony Capital and Liberty Global, and a JP Morgan-led credit facility.
However, the union did not work and in August 2020, Eros STX said it was entering into an exclusive negotiation period with a third party to monetise the film library in order to pay off over $150 million outstanding on the credit facility backed by JPMorgan and $22.7 million in mezzanine debt,
The deal didn’t fructify, and the two parties decided to part ways.
With the completion of the deal, Eros Media will retain a 15% non-voting stake in STX. The company said it has fully repaid $152 million of outstanding JP Morgan credit facility and subordinated credit facilities at STX level.
With the exit of STX, there will be restructuring of the company. While executive chairman Kishore Lulla will step down, Rishika Lulla Singh will take over as the new executive chairperson.
Eros Media will be headed by Pradeep Dwivedi as the new CEO, while Rajesh Chalke will be the new CFO of the company.
In a press statement, the company said that it is expecting over $120 million in revenues for the financial year 2023.
It also expects to reduce its net debt from $130 million at the end of FY22 to $115 million by end of FY23.
“As the business and market matures, I am confident in Eros Media’s execution capability with fundamentals on track,” said Lulla. “I am pleased to announce Pradeep Dwivedi as CEO and welcome Rajesh Chalke as CFO to usher in a new era for Eros Media, with guidance from an experienced board. I will step down from the executive positions at Eros Media in the near future and dip into my entrepreneurial fibre to build the biggest Web3 and Blockchain Indian eco-system for the world via Eros Investments.”
Eros Investments is an investment company controlled by the Lulla family that has invested in ventures including with Eros Media, XFinite and Mzaalo.
“The amalgamation of the virtual/meta world, with high fidelity gaming and digital goods/NFT’ bound via de-centralized technology in the Web2, Web 3 and Immersive experiences is principal premise of Eros Investment’s focus over the next 10 years,” Lulla said.
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