NEW DELHI: Sony Pictures has been permitted by the Competition Commission of India (CCI) to buy out the Indian promoters in Multi Screen Media as it feels that the "proposed combination is not likely to have an appreciable adverse effect on competition in India".

The Commission gave its approval under Section 31 (1) of the Competition Act, noting that the approval is without prejudice to any other legal/statutory obligations and will stand revoked if the information provided by the parties is found to be incorrect.

The Commission said: "Upon consummation of the proposed combination, the shareholding of Sony In MSM will increase from 62 to 94.39 per cent and thereafter, the acquirers will make MSM India undertaken any action including those mentioned in the Shareholders Agreement for which currently the consent/approval of the sellers - Atlas Equifin and Grandway Global Holdings would be required."

Thus, the combination will result in transfer from joint to sole control for the purposes of the Combination Regulations.

Sony Pictures Television (SPT), a wholly owned subsidiary of the US-based Sony Pictures Entertainment, had in June inked a deal with these shareholders to acquire 32 per cent stake for $271 million.

The seven Indian promoters, including Singapore-based investment banker Rakesh Agarwal, Shemaroo Films managing director Raman Maroo, World Media Group‘s Sudesh Iyer, actor Jackie Shroff and businessman Sadanand Sule, together own 32 per cent in the broadcaster via their consortium company Atlas Equifin and Grandway Global Holdings.

After the acquisition, the remaining six per cent will be held by international fund Capital International Group.

The deal is subject to government approval and the transaction will be completed by the end of December.

According to MSM CEO Manjit Singh, acquisition of the shares will be made in stages, with $145 million (about Rs 8.09 billion) expected to be paid by SPT by the end of December. The remaining $126 million will be paid in three equal annual installments starting from the fiscal year ending March 2014.

MSM runs eight channels: Sony TV, Max, Sab, Sony Pix, AXN, Animax and the recently launched music channel Mix and sports channel Six.