Final hearing for Star India and Viacom18’s merger plea scheduled August 1

The National Company Law Tribunal (NCLT) has scheduled the final hearing for Star India and Viacom18’s merger plea on August 1. Star India and Viacom18 have agreed to merge operations, forming India’s largest media and entertainment business valued at $8.5 billion, with a combined FY23 topline of Rs 25,000 crore.

The July 11 hearing’s order sheet indicated that the division bench, comprising technical member Anu Jagmohan Singh and judicial member Kishore Vemulapalli, instructed both parties to issue new notices for the final hearing to the state and central governments, tax authorities, the Competition Commission of India (CCI) and the Ministry of Information and Broadcasting. The NCLT also directed the parties to include a statement in the notices specifying that if no response is received within 30 days, it will be assumed that the authorities have no objections to the merger scheme.

Once the NCLT approves the scheme, it will require clearance from the Competition Commission of India (CCI). The merger of Star India and Viacom18 is currently under CCI review due to its potential impact on the broadcasting and streaming sectors.

Backgrounder
On May 7, the tribunal admitted the merger scheme between Star India, Viacom18, and Digital18. This has been approved by secured and unsecured creditors, as well as equity and preference shareholders.

Digital18 intends to transfer Viacom18’s assets to Star India, which will allot proportionate shares to the former. Star will also allot shares to RIL for a $1.4 billion fund infusion. Following the allotment, Star’s shareholding will be divided among Walt Disney (36.63%), Digital18 (46.11%), and RIL (16.34%).
BCS Bureau