In its order dated July 11, the tribunal directed both parties to issue a fresh notice of the final hearing
If authorities do not reply within 30 days of receiving the notice, it will be presumed that they do not object to the scheme of arrangement between Star India and Viacom18,
This comes at a time when the CCI has intensified its scrutiny of the $8.5 Bn merger between Reliance Industries and Walt Disney’s India media assets
The Mumbai bench of the National Company Law Tribunal has scheduled the final hearing on the merger of Walt Disney-owned Star India with Reliance Industries-owned Viacom18 for August 1.
In its order dated July 11, the tribunal directed both parties to issue a fresh notice of the final hearing, ET reported.
The bench led by justices Kishore Vemulapalli (judicial) and Anu Jagmohan Singh (technical) said that the notice must be served to the central/state governments, tax authorities, and regulatory bodies like the Competition Commission of India (CCI) and the Ministry of Information and Broadcasting.
If authorities do not reply within 30 days of receiving the notice, it will be presumed that they do not object to the scheme of arrangement between Star India and Viacom18, the order said.
Earlier this year, Reliance Industries, Viacom18 and Disney inked a deal to set up a joint venture that will combine the businesses of Viacom18 and Star India Private Limited.
The deal values the JV at $8.5 Bn on a post-money basis. Once the merger is enforced, the JV will be controlled by RIL, holding a 16.34% stake, while Viacom18 and Disney will own 46.82% and 36.84% of the company’s stakes, respectively.
Further, Reliance plans to invest INR 11,500 Cr in the JV. On top of Reliance and Viacom18-owned sports content, the resultant entity will have exclusive rights to distribute Disney’s content in India.
The JV is expected to have a strong user base of 750 Mn in India.
Once the merger plea gets the seal of approval from the NCLT, it will still require the nod from the Competition Commission of India.
However, the $8.5 Bn merger between Reliance Industries and Walt Disney’s India media assets has come under the scrutiny of CCI recently.
Earlier this month, the antitrust watchdog reportedly asked the companies nearly 100 questions, including specifics on sports rights.
It also sought answers as to why YouTube, which primarily features free, user-generated content, should be considered in the same market as subscription streaming services like Netflix and Disney.
