Star India has received permission for investing Rs 2500 crore in foreign direct investment in expanding its growth in the country. The approval by the Foreign Investments Promotion Board (FIPB) includes acquisition of the broadcasting business of Maa TV - engaged in broadcasting sector on a slump sale basis.
A source in Star India told Indiantelevision.com that this meant acquisition of software and liabilities of Maa TV and not a take-over of the company.
As was reported by this website earlier in February, Star India said it will acquire Maa Television Network’s four Telugu channels namely Maa TV, Maa Movies, Maa Music and Maa Gold. “Star will acquire all assets of Maa TV including broadcasting rights subject to regulatory approvals. After the approvals, Maa TV will become part of Star network. We do not have any Telugu channel in our portfolio,” Star India CEO Uday Shankar had then said.
Maa TV group is owned by industrialist Nimmagadda Prasad, Rajya Sabha member Chiranjeevi and actor Nagarjuna.
In addition, Star India has received the nod from FIPB for further issuance and transfer of shares to its foreign collaborator.
Meanwhile, the FIPB once again deferred the proposal by INX Music to undertake the additional activity of broadcasting of a non-news and current affairs channels in various Indian languages. As proposed scheme of arrangement, the 9X Jhakaas Marathi channel shall be merged into INX Music, a company which aggregates and distributes music content for TV channels, having 70.85 per cent indirect foreign investment.
Additionally, Eros International Media’s proposal for making downstream investment by way of acquisition of shares of an Indian company for non-cash consideration, that is, by issuance of shares of the applicant company to the existing shareholders of the investee company has been deferred.
Today Magazines Lifestyle Private Limited received approval for Rs 2.05 crore foreign investment of 49 per cent by Cooperatief International Publications Holding through transfer and further issue for an aggregate consideration.
Approval has also been given to Indium IV (Mauritius) Limited through India Value Fund IV for an investment of up to Rs 200 crore in an Indian company - Atria Convergence Technologies engaged in providing internet services. The two companies together propose to invest in the capital of Atria in excess of 49 per cent up to 100 per cent by subscribing to equity or compulsorily convertible preference shares or fully convertible debentures.