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Naik Naik and Company represented the Anil Ambani-owned Reliance Entertainment Limited and Phantom Films Private Limited, a company formed by Anurag Kashyap, Vikas Bahl, Vikramaditya Motwane and Madhu Mantena, in relation to the partnership and a 50:50 joint venture to produce more films. Reliance now will own 50% shareholding of the combined business, while the balance will be equally shared by the four promoters of Phantom Films. The day-to-day operations of the joint venture will be managed by Phantom Films.

This is one of the biggest M&A deal in the media sector as of 2015. It also involved structuring of the Business Transfer Agreement and due diligence of approximately 200 films.

The detailed story, as first reported by Livemint on March 11, 2015 is given below:

Mumbai: Anil Ambani-owned Reliance Entertainment Ltd on Sunday said its film production and distribution business in India will partner Phantom Films, a company formed by Anurag Kashyap, Vikas Bahl, Vikramaditya Motwane and Madhu Mantena, in a 50:50 joint venture to produce more films.

Reliance will own 50% shareholding of the combined business, while the balance will be equally shared by the four promoters of Phantom Films. The day-to-day operations of the joint venture will be managed by Phantom Films.

The combination of Reliance and Phantom Films plans to develop and produce at least five to six films every year, apart from distribution of films in India and overseas, and syndication of rights from the over 175 films strong library, Reliance Entertainment said in a statement.

Reliance Entertainment has produced, distributed and released more than 170 films in multiple Indian languages, including Hindi, Tamil, Telugu, Malayalam, Kannada, Bengali, etc.

Reliance Entertainment did not disclose the financial details. A Reliance Group executive said the financial details would be disclosed in coming weeks. “The Phantom deal is structured on the lines of Prime Focus,” he said, requesting anonymity.

In July 2014, Reliance Media Works Ltd (RMW), the media and entertainment arm of Reliance Group, announced the merger of its global film and media services business with Prime Focus Ltd. As part of the deal, the India and overseas operations of RMW’s film and media services business will merge with Prime Focus through a slump sale, creating the largest media services group in the world with 5,500 people working across 20 locations.

Reliance Entertainment is the flagship motion picture arm of India’s Reliance Group with a significant presence in filmed entertainment.

Referring to the Phantom deal, Amitabh Jhunjhunwala, group managing director, Reliance Group, said the company is delighted to partner with such creative and talented individuals who have an enviable track record of creating great cinema.

Anurag Kashyap said this deal opens up windows to international opportunities and talent adding “we hope to optimise on this opportunity and take Indian cinema international, and also attract excellent talent into the country.”

Phantom Films has an impressive slate of six films releasing over the next 12 months, including Bombay Velvet starring Ranbir Kapoor, NH 10 with Anushka Sharma, Shandaar with Shahid Kapoor and Alia Bhatt, Udta Punjab with Shahid Kapoor, Kareena Kapoor and Alia Bhatt, Hunterr and Ghoomketu.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay High court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.