India’s Foreign Investment Promotion Board has sent Disney’s proposal to increase its foreign share holding in UTV Software, from 48.02% (wasn’t it 58%?) to 100% via Walt Disney Company (Southeast) Asia Pte Ltd to the Cabinet Committee on Economic Affairs for approval. Disney can proceed with buying back UTV shares from the open market only after it gets an approval.
However, three proposals in the digital and media-sector have been approved, some deferred, some rejected:
– Augere Wireless Broadband India Pvt. Ltd.: a company that won 20Mhz of Broadband Wireless Spectrum in Madhya Pradesh for Rs 124.66 crore, has received an approval of Rs 54 crore for FDI inflows for capitalization of pre-incorporation expenses.
– 9X Media Pvt. Ltd. : The government has allowed a FDI of Rs 26.20 crore in the media business. The particulars of the proposal include: increasing foreign equity participation from 80% to 100% and making downstream investments upto 100%.
– What’s On India Media Pvt. Ltd. : To induce foreign equity by issuing preference shares for up-linking a non-news and current affairs TV channel and thus carrying out the TV channel business. A FDI of Rs 31.49 crore has been allowed. Strangely, What’s On India had received another approval in June, for Rs 99 lakh, for exactly the same business.
– Springer India Pvt. Ltd. : To increase foreign investment upto 100% to carry out the business of publishing and re-printing of books in electronic and printed forms across multiple languages.
– Springer Editorial Services Pvt. Ltd. : To increase foreign equity upto 100% to carry on the business of publishing services, content, development, content management, content outsourcing, providing a comprehensive service including data conversion, editorial services, pre-press and other services.
– Reed Elsevier India Pvt. Ltd. : To undertake the activities relating to the business of publishing and co-publishing (in and outside India), including digital publishing, printing, reprinting, adaptation, article reprinting, repackaging, translation, distribution of scientific, technical, medical, specialty and research journals/magazines/periodicals in any media including print.
– InterCall Asia Pacific Holdings Pvt. Ltd., Singapore: To set up a WOS service that would facilitate audio, video and web conferencing services for business, commercial, banking and other establishments.
– Vodafone Essar Ltd.: Transfer of shares from Resident to NR to carry out the activities relating to Telecommunication.
– GV Films Ltd., Chennai: Swap of shares against matured FCCBs. The company is engaged in the production, distribution and screening of films.
– Hughes Communications India Ltd: To make downstream investments to carry out the activities relating to telecom sector.
Earlier, FIPB had approved InMobi to transfer shares to carry out the business of Developing software and licensing it to Advertising Network related business.