ITV

Tag: FIPB

  • UTV launching youth-centric entertainment channel in JV with Astro

    UTV launching youth-centric entertainment channel in JV with Astro

    MUMBAI: Ronnie Screwvala has swung back into action. After selling off kids channel Hungama TV to Walt Disney in July, he is making a re-entry into the broadcasting space.

    Screwvala’s UTV Software Communications Ltd. is forming a 50:50 joint venture with Malaysia-based Astro for launching a Hindi general entertainment channel (GEC) aimed at the youth. An investment of Rs 2 billion will be earmarked towards this.

    The new venture will operate across multiple platforms, including a television channel, gaming, mobile, licensing and merchandising, ground events and the internet.

    The first television channel in Hindi is slated for launch in the second quarter of 2007, supported by a huge multimedia campaign and multi-city ground events. UTV is currently conducting extensive research on this target group as an input to its programming and marketing designs.

    The plans for the venture include the launch of multiple channels across languages in India and Southeast Asia. UTV had earlier entered into a business co-operation arrangement with Astro to set up kids channels in Malaysia and Indonesia, which launched on the Astro platform earlier this year.

    Screwvala is looking at creating a channel targeted at audiences between the age group of 15-25 years. In Hungama TV, the core audience was 4-14 years.

    Walt Disney has acquired 14.9 per cent stake in UTV, offering the multinational giant to participate in expansion opportunities in India. With the buyout of local Hindi channel Hungama TV in a combined purchase deal, Disney has already consolidated its position in the kids segment.

    UTV recently received the FIPB (Foreign Investment Promotion Board) and other regulatory approvals for the sale of stake to Walt Disney. It may be recalled that Astro had signed the MoU with UTV to acquire 26 per cent in Hungama TV but with Disney later making a combined purchase offer, the deal didn’t sail through.

    Astro has ambitious plans in India and, along with Value Labs and NDTV, bought out the operations of Radio Today, the radio division of Living Media Group, which runs under the Red FM brand.

    The GEC segment is poised to see further activity with NDTV planning to make an entry. Star Plus continues to lead the space but is being challenged by Zee Telefilms. Sony TV hopes to stage a comeback with Big Boss.

    Screwvala’s attempt, analysts say, will be to carve out a specific target audience as he so successfully did in the kids space.

    Meanwhile, Disney’s acquisition of Hungama TV has concluded with the final approval from the FIPB. This was followed by the inflow of Rs 1.4 billion ($ 31.125 million) from Disney to UTV within a week. Disney has also invested Rs 670 million ($ 14.5 million) towards a 14.9 per cent stake in UTV. The two companies are now working out synergies in areas across television content production, movie production and broadcasting.

    “We will be working along with Disney in the areas of TV, animation and movies,” says UTV CEO Ronnie Screwvala.

    Areas of common involvement have been identified including the launch of niche channels, movie co-productions and television content creation by UTV for Disney channels.

    UTV scrip slipped 2.7 per cent in the BSE to end today at Rs 258.70.

  • Star gets FIPB approval for new channels, share transfer

    Star gets FIPB approval for new channels, share transfer

    MUMBAI: The Foreign Investment Promotion Board (FIPB) has approved a proposal by Star Group to invest in the country to start and create new non-news channels, which in all probability, would be niche channels for the direct-to-home (DTH) platform.

    FIPB has also approved share transfer from Indian shareholders to others in companies through which Star proposes to undertake other initiatives.

    “The commercial feasibility of creating channels in India has been matched by the liberalisation in foreign investment norms relating to the sector, which now makes it possible for a foreign investor to invest wholly in an Indian company to undertake activities of owning and uplinking a TV channel in India,” the Star application with the FIPB had stated.

    However, FIPB’s approval will have to be ratified by the finance ministry before Star can go ahead with its proposed activities.

    In its application to FIPB, Star had said that for its newer activities, it proposes to use three companies in India, which have already been incorporated. The need for separate companies was driven by the fact that the nature of content in the (proposed) channels is distinct and this necessitates different skill sets and facilities, which can be more “efficiently housed in different entities.”

    The three companies sought to be used by Star are Touch Tele Content India Pvt Ltd (TTCL), PPV Movies & Content Pvt Ltd (PMCPL) and Star Games Development Company Pvt Ltd (SGDPL). Star’s holding in the last two companies would be held by a Mauritius based group company, Star ISP Ltd.

    In addition to the investment into fresh equity of PMCPL and SGDPL, Star ISP Ltd will also purchase the existing shares from the current shareholders of the investee company, which were in the process of seeking clearance from the information and broadcasting ministry for uplinking channels from India.

    Touch Tele is presently engaged in providing support services to other media companies. PPV Movies and Star Games Development were recently incorporated as companies.

    The Star application also stated that amongst the many benefits accruing from this proposal will be investments made in India to create “world class infrastructure related to channel creation that is, on-air promotion, playout (facilities), delivery, etc.”

  • Zee News seeks government clearance on foreign shareholding

    Zee News seeks government clearance on foreign shareholding

    MUMBAI: Zee News Ltd (ZNL) has moved the Foreign Investment Promotion Board (FIPB) to seek clearance on foreign shareholding, which would not exceed 26 per cent as per government norms for news ventures.

    The company is seeking government clearance under a proposal wherein foreign promoters of Zee Telefilms Ltd (ZTL) will be transferring their foreign holdings to an investment company in India.

    As part of a restructuring, ZTL had proposed to spin off its news and regional channels into ZNL to comply with uplinking regulations on foreign holdings in news channels, which are capped at 26 per cent.

    The FIPB application of Zee News specifies, “Issue of 42,467,291 equity share of the company to the foreign promoters of ZTL, that is M/s Delgrade Ltd and Lazarus Investment Ltd, which would be transferred to the Indian promoters of ZTL on allotment, that is to M/s Jayneer Capital Pvt Ltd.”

    The foreign holding of promoters in Zee Telefilms is primarily through Delgrada Ltd, which has 19.98 per cent stake. Delgrada is an overseas corporate body (OCB) owned by the Zee Telefilms promoter Subhash Chandra. The balance 2.79 per cent is held by Lazarus Investments Ltd.

    The shares to be issued to foreign financial investors (FIIs) in ZNL will have to fall within the 26 per cent cap also. The foreign shareholders will, thus, be given preference shares of equivalent value to bring it under limit. Along with this, the promoters’ foreign holding will be transferred to an investment vehicle (Jayneer Capital Pvt Ltd) in India.

    Jayneer Capital Pvt Ltd is one of the Indian promoters of ZNL and holds 40 per cent equity stake in ZNL, while 25 per cent is held by another Indian entity, Churu Trading.

    As per regulations, Indian shareholding of 51 per cent is mandatory in a TV news venture uplinking its channel from India. After the completion of the de-merger and transfer of shares, Indian promoters will be able to hold the mandated percentage in ZNL, an executive of Zee News admitted.

    As per a plan submitted to the government, every 100 shares of Zee Telefilms would fetch 45 shares of Zee News. Additionally, for every 100 shares of Zee Telefilms held by FIIs, 1,781 preferential shares of Zee News would be allotted.

    At the time of listing, the entire shareholding of FIIs and Zee Telefilms in Zee News would get transferred to Indian shareholders of Zee News. The company is looking at becoming a public company by November-end by which time routine clearances for the Zee Tele de-merger would have come from the Bombay High Court.

    Zee News, which manages news and regional channels of the Zee group, is targeting a turnover of Rs 2.5 billion this fiscal.

    Earlier, this year, the Zee Telefilms board approved splitting of its broadcasting business into three entities — news operations, broadcast and content creation and cable distribution. DTH service of Dish TV is undertaken by another Chandra company, ASC Enterprises.

  • FIPB clears Adhikari Brothers’ Broadcast Initiatives plans to induct foreign equity partner

    FIPB clears Adhikari Brothers’ Broadcast Initiatives plans to induct foreign equity partner

    MUMBAI: The Foreign Investment Promotion Board (FIPB) has formally cleared the application filed by Sri Adhikari Brothers News and Television Network Limited (the name has changed to Broadcast Initiatives Ltd).

    The approval is part of the procedure for news channels planning to raise funds through an initial public offer (IPO) to induct investments from non-resident Indians (NRIs) or foreign institutional investors (FIIs). The company has filed a Draft Red Herring Prospectus for an IPO.

    Broadcast Initiatives Ltd, the Sri Adhikari Brothers promoted company through which Janmat news and views channel was launched, proposes to issue 8,550,000 equity shares of Rs 10 each for cash at a premium to be decided through the book building process. The issue would constitute 44.27 per cent of the fully diluted post issue equity capital of the company. Post-issue, the promoter holding would be 55.73 per cent.

    As per the prescribed government norms, the FIIs can invest in news and current affairs channel and companies managing them, but the total foreign investment component is capped at 26 per cent, whereby the FII investment has to be part of the total foreign investment allowed, including foreign direct investment.

    For any such induction, the news broadcaster has to obtain a no objection certificate from information and broadcasting ministry as well as the FIPB approval for the shares issued to the NRIs/FIIs.

    In its application last month, the Adhikari Brothers had said that it “proposes to induct foreign equity partner up to 26 per cent through the IPO/Public issues.”

    On the same day, the FIPB had also approved a proposal of Reuters Group Plc to invest in the Times Global Broadcasting Co. Ltd’s, which manages the six month old English news and current affairs channel Times Now. The ministry has approved an investment of Rs 221 million by the Reuters in the Times Global Broadcasting for uplinking and broadcasting news and current affairs television channels from India.

    The clearances are part of a package okayed by finance minister P Chidambaram based on the recommendations of the FIPB in its meeting held on 29 June 2006. The total package approved by the FM amounts to Rs 7.62 billion.

  • Govt ultimatum to channels on downlink norms

    Govt ultimatum to channels on downlink norms

    NEW DELHI: The Indian government has issued an ultimatum to all TV channels that those failing to adhere to downlink norm deadline of 10 May will not be allowed to downlink into the country.

    In a statement issued on 3 May, the government has said, “It is clarified that (television) channels for which even complete applications, with processing fees, are not received on or before May 10, 2006, shall not be permitted to be downlinked thereafter.”

    The information and broadcasting ministry has come out with clarifications on various queries on the policy guidelines for downlinking of television channels in India on its website.

    The guidelines stipulate a time of 180 days from 11 November 2005 for completion of all formalities of registration under downlinking guidelines.

    On queries relating to foreign direct investment (FDI) permitted in television ventures, the government statement states that 100 per cent FDI is permitted in the broadcasting sector, which is not under the automatic route and all such proposals will have to be routed through the Foreign Investment Promotion Board (FIPB).

    The government has also clarified that as on the date of submission of application for permission under downlinking guidelines, the applicant company must have requisite net worth and continue to satisfy the requirement thereafter.

    The information and broadcasting ministry had earlier stipulated different net worth of television companies as per categories, namely entertainment, news, etc, in an effort to differentiate between the serious and non-serious players.

    The downlink guidelines state that all TV channels wishing to be downlinked into the country would have to get themselves registered with a designated authority and also establish a permanent establishment, amongst some other stipulations that have been dubbed stringent by some media companies.

    For example, the government reiterated on Wednesday that an applicant company is required to provide a facility where online monitoring of content being beamed into India is possible.

    Also, the system should have the capacity to store data for 90 days, which should be available to the government at any point of time in India at a pre-designated place.

    The companies need not set up new facilities for this purpose, but could authorize any of their multi service operators (MSOs) or head end operators to provide this facility, the ministry has clarified.

    The government has shot off letters relating to various queries on downlink norms to the Indian Broadcasting Foundation, Star Group and Time Warner, according to information posted on the site of the I&B ministry.

    Earlier in March, the government had turned down a request from the Indian Broadcasting Foundation to extend the 180-day deadline for fulfilling newly-formulated downlinking norms by broadcasting companies.

    Indiantelevision.com has learnt from government sources that Star group, for instance, has applied under downlink norms for various family channels separately.