Indian movie studio is unloading Hollywood indie just one year after merger
STX Entertainment will split off from Eros STX Global Entertainment Company and be acquired by The Najafi Companies for $173 million, Eros announced Tuesday. The closing is expected around January 2022, pending “customary closing conditions.” The purchase agreement gives Eros a “go-shop period,” per a release, during which time the board (with help from financial advisor Lazard) will solicit other proposals for 45 days. Eros will pay a termination fee of $4.5 million in addition to $2 million that Najafi funded as a deposit. Najafi has partnered with the Forest Road Company as its lender. Forest Road is expected to repay STX’s debt and provide it with working capital in the future. Eros executed a definitive agreement to sell STX, which was announced in November.
