NEW DELHI: The Indian government today cleared a clutch of media-related FDI proposals, including that of Nimbus Communications and the Hinduja-promoted Indusind Media Communications.
In the case of Nimbus Communications, the government has permitted transfer of shares representing 10.57 per cent held by an erstwhile overseas corporate body, Transatlantic Corp, to Americorp Ventures.
This means that 10.57 per cent shareholding in Nimbus is now held by Americorp. Government document state that there is no inflow of foreign investment.
This approved transaction will also lead to a change in the nature of foreign equity holding of the media and communications company as the shareholding will shift from an overseas corporate body to the Mauritius-based Americorp.
Transatlantic Corporation, also based in Mauritius, used to hold before the government approval over 4.3 million shares in Nimbus, which were acquired through foreign inward remittance under the automatic route of FDI policy.
The Mumbai-founded Nimbus is a company that operates in the media and entertainment space dabbling in activities like advertising, publicity, marketing consultancy/research, entertainment through music, dance, drama, movie, TV and other mass media communications.
Nimbus’ case was amongst the 29 foreign direct investment (FDI) cases approved by finance minister P. Chidambaram amounting to Rs. 1,470 million. These proposals related to ministries/departments of bio-technology, commerce, environment & forests, information technology, information and
broadcasting, etc.
The Indusind Media Communications (IMC) case envisaged allotment of equity shares in IMC to a foreign company (Kudelksi S.A. of Switzerland) against funds received in an escrow account in London.
Though the government today did not specify the amount of shareholding that Kudelksi will have in IMC, company sources said it is likely to amount to less than five per cent.
At a time in 2003 and 2004 when conditional access system (CAS) was a hot topic, IMC had entered into a deal with Kudelksi for supply of encryption technology and other related services for setting up a cable TV network for distribution of multi-channel information/entertainment package and other
value added services. The foreign company was also to supply IMC with the set top boxes.
Other media cases included that of editing, printing, sales and distribution of the Indian edition of the International Banking Systems Journal, produced by IBS Publishing of the UK and a proprietorship concern relating to production of motion and video films involving a non-resident Indian from Australia. Here
the FDI inflow will amount to Rs. 20 million.
