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Star DEN Media gets FIPB nod
MUMBAI: Star India, a wholly owned subsidiary of Rupert Murdoch-controlled 21st Century Fox, is on course to having an investing company as it seeks to expand in the Indian market.
Star DEN Media Services, owned by Star India, has got the approval from the Foreign Investment Promotion Board (FIPB) for this.
In its application to the FIPB, Star DEN Media Services had sought to change its business activities from providing services to broadcasters for placement of television channels to acting as an investing company.
It may be recalled that Star India acquired joint venture partner DEN Networks’ entire 50% stake in Star DEN for Rs 40.35 crore (Rs 403.5 million).
Earlier this year, the FIPB had rejected Star DEN Media Services’ proposal. Following this, the company had made a fresh application.
The entity will allow Star to make investments in different ventures. When an opportunity arises, it can channel investments.
Star will look to capitalise on the company when an opportunity throws open.
Meanwhile, the FIPB, headed by Economic Affairs Secretary Shaktikanta Das, has deferred You Broadband’s proposal. The cable broadband company had sought post facto approval for acquisition of 9,79,875 equity shares of its downstream company Digital Outsourcing Pvt Ltd (DOPL) in exchange for issue of 20,58,759 equity shares issued to its resident shareholders through share swap. DOPL is engaged in the business of cable TV services.
Incidentally, Vodafone India has agreed to acquire 100% of TRG Capital-owned You Broadband for Rs 400 crore.
On Thursday, FIPB cleared six proposals, including that of Sanofi Synthelabo India and Idea Cellular Infrastructure Services, entailing foreign investment of Rs 1,200 crore. The other proposals that got the nod were Boehringer Ingelheim India, Menarini India and Recipharm Participation.
Among the proposals deferred were those of Crest Premedia Solutions and Scientific Publishing Services.
Out of 17 FDI proposals considered on Thursday, six got approval, three were rejected, and another six were deferred for further consultation and more information.
Overall, foreign direct investment (FDI) into India grew by 30% to $21.62 billion during the first half of 2016–17. In FY16, FDI grew 29% to $40 billion compared to $30.94 billion a year ago.