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.

MUMBAI: Marking its foray into the southern language space, Sony Pictures Television has agreed to acquire a 30 per cent stake in Maa Television Network.

SPT has entered into a strategic alliance with Maa Television Network that would give it a stake in the regional broadcaster that operates four Telugu-language channels.

The alliance would enable SPT or any of its affiliates to acquire the stake on signing the "Definitive Agreement" and subject to obtaining necessary approvals.

The majority shareholders of Maa Television Network and SPT have signed a Letter of Interest (LOI) to this effect. N Prasad, K Chiranjeevi, Nagarjuna Akkineni and Allu Arvind, the four main promoters of Maa Television Network Limited, together control about 95 per cent of the company?s equity capital at present.

Multi Screen Media CEO Manjit Singh says, "An alliance between SPT and Maa TV will provide strategic opportunities for both the companies, as well as great viewing for television audiences in India."

Sources say N Prasad holds the majority with around 60 per cent stake. The network has turned profitable and its revenues are estimated at around Rs 1.8 billion.

Maa TV Network launched its flagship Telugu general entertainment channel Maa TV in 2002. Maa Music came up in 2008, followed by Maa Movies and Maa Juniors (kids channel) in 2011. Maa Juniors ceased in January 2012 and Maa Gold, a GEC focussing on the youth, replaced it on 4 February.

Maa Television Network chairman N Prasad says, "With Sony as a strategic partner on board, Telugu viewers can expect more and more quality programmes and family viewing from our network of channels."

Sony had evaluated Maa in 2008 but withdrew due to the global downturn. When it expressed its interests in regional expansion, it looked at ETV but found the valuation too high.

"Maa Network has become stronger since Sony last looked at it in 2008. It has more channels and is profitable. It has built a strong movie library and has surged in ratings. Maa Gold, the newly launched channel, has to pick up but it has a low-cost model, airing game shows, some repeats of serials from Maa TV and dubbed content," says a source.

The valuation will be finalised after the due diligence is over. "This shouldn?t be a problem. Sony had examined the books of Maa TV Network earlier. They have to just update it," the source adds.

In 2009, Sony Pictures Television International acquired Bengali movie channel, Channel 8.