Sony pictures Entertainment, USA (SPE), promoters of Sony Entertainment Television, India (SET) is restructuring its operations in India. The Japanese entertainment major has asked for a government approval to increase the total foreign equity holding in SET, India by over 20% to approximately 90%. Foreign equity holding in the company is around 68% at present.
The rationale for internal restructuring is stated to be Sony's desire to develop SET, India into an international hub for entertainment and media designed to popularise Indian culture, language and traditions to the Indian diaspora located across the world.
Under the scheme of restructuring drawn out by the Japanese entertainment major, SET India Pvt Ltd would acquire 100% of the shares of SET Satellite (Singapore) Pte Ltd through a share swap transaction, thus making SET Singapore a wholly-owned subsidiary of SET India.
The share swap between the two companies has been fixed in the ratio of 1:16 SET India shares to SET Singapore shares. SPE Singapore would be allotted 2,535,859 SET India shares comprising 37.97% of SET India 's equity. These shares would be simultaneously transferred to SPE Mauritius Holdings and SPE Mauritius Investments, both wholly owned subsidiaries of SPE Singapore.
Simultaneously, Grandway Global Holdings Ltd would be allotted 1.324,487 SET India shares comprising 19.83% of the company's equity. Grandway Global is an NRI-controlled company incorporated in Mauritius . Interestingly, the name company does not figure in the list of Overseas Corporate Bodies (OCBs) which have been derecognised by RBI/SEBI for acquisition of additional shares by way of fresh investment or transfer.
After completion of the share swap, the foreign shareholding in SET, India would go up to 88.16%.
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