Disney needs to wait a li’l more for FIPB nod

20 Sep,2011

By A Correspondent

The Foreign Investment Promotion Board (FIPB) of the Ministry of Finance, the Government of India has approved 12 Proposals of Foreign Direct Investment amounting to Rs 242.88 crore approximately. However, it has deferred its decision on the much-hyped offer by Walt Disney to buy the promoter’s stake in UTV.

 

The proposal by Walt Disney Company (Southeast Asia) Asia Pte Ltd was to increase foreign shareholding from 48.02 percent to up to 100 percent to carry out the business of film distribution, content development and distribution, animation productions, and through downstream to undertake broadcasting business, by uplinking one or more general entertainment (not being news and current affairs) channel, in addition to the existing activities.

 

It may be noted that the deferring of the decision only indicates that they matter has been put off to the next FIPB meeting which is scheduled for September 30, 2011.

 

Some of the other proposals that have been deferred include Cellcast Interactive India’s proposal of

setting up of three non-news and current affairs Television channels in Hindi, Tamil and

Telugu in India. 9X Media Pvt. Ltd has requested to increase foreign equity participation from 80% to up to 100% and also to make downstream investments up to 100 %. Decision on this too has been deferred.

 

Mr Atul Phadnis’s What’s On India Media Pvt. Ltd also has to wait before it gets an approval on the induction of foreign equity by way of issue and allotment of compulsorily convertible participating preference shares to carry out the business of TV channel license for uplinking a non-news and current affairs TV channel.

 

Meanwhile, FIPB approved Burda Gesellschaft mit BeschrAnkter Haftung, Germany’s proposal to set up a wholly owned subsidiary to engage in the business of publication of magazines/ periodicals/ journals focussing on lifestyle, entertainment, fashion, interior design/ decoration, cars and computer. The proposal approved of publishing Indian editions of foreign titles and also editions of Indian titles besides custom publishing for third party and events and matters related to publication of magazines/ periodicals/ journals and promotional activities.

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