The company, which last month announced that Walt Disney would buy out the stake held by public shareholders and other promoters of UTV Software, would require the CCI's clearance to establish that the stake sale will have any ramifications on market competition
New Delhi: Media and entertainment company UTV Software Communications (UTV Software) has approached the Competition Commission of India (CCI) to seeks approval for its proposed merger with Walt Disney Co (South East Asia) Pte Ltd in a deal valued at around Rs2,000 crore, reports PTI.
The company, which last month announced that Walt Disney would buy out the stake held by public shareholders and other promoters of UTV Software, would require the CCI's clearance to establish that the stake sale will have any ramifications on market competition.
"They approached the commission on 1st August. On the face of it, there seems to be no competition concerns, but more information has been sought from UTV regarding the deal," a source told PTI.
Subsequent to the buy-out of public shareholders by Walt Disney Company, UTV Software, a promoter group firm, will be delisted from both the Bombay Stock Exchange and National Stock Exchange.
Currently, Walt Disney is the majority shareholder in UTV Software, with 20,497,994 equity shares, accounting for a 50.44% stake.
The company's board of directors has approved the delisting proposal and the acquisition of shares from the public at a price not exceeding Rs1,000 per equity share.
Post-delisting, Walt Disney would also acquire 80,53,480 equity shares representing 19.82% of the current paid-up equity share capital of UTV Software from the other promoters of the company at the same price as discovered pursuant to the delisting offer.
At Rs1,000 per share, the deal could be valued at around Rs2,000 crore. The company's other promoters include Rohinton Screwvala, Unilazer Exports & Management Consultants, Unilazer (Hong Kong) and Zarina Mehta.
From 1st June, the mandate of the CCI was expanded to include vetting high voltage merger and acquisition deals.
Under the Competition Act, 2002, companies with a turnover of more than Rs1,500 crore will have to approach the CCI for approval before merging with another firm. Also, companies with combined assets of Rs1,000 crore or more, or a combined turnover of Rs3,000 crore or more, would require the CCI's nod.
The maximum time limit for the CCI to vet mergers has been reduced to 180 days from the earlier 210 days, but the commission may also give its nod faster, depending on the merit of the case, sources said.
The penalty, which amounts to 7% of the company's average annual turnover of last three years, was imposed as DLF has been proven guilty of violating section 4(2) of the Competition Act, 2002
New Delhi: The Competition Commission of India (CCI) today imposed a penalty of around Rs600 crore on realty major DLF Ltd for abusing its dominant market position, reports PTI.
The penalty, which amounts to 7% of the company's average annual turnover of last three years, was imposed as DLF has been proven guilty of violating section 4(2) of the Competition Act, 2002, sources told PTI.
A company violates Section 4(2)(a) of the Competition Act when it directly or indirectly imposes unfair or discriminatory conditions or prices with respect to the purchase or sale of goods or services.
In May last year, on the basis of complaints by some people who booked flats in DLF projects, the CCI had referred the matter for a probe by the director general (investigations).
According to one such complaint, DLF had promised to complete its residential project in Gurgaon, called Belaire, in 2009, but buyers are yet to get possession.
In addition, DLF has increased the number of floors in the apartment complex from the original figure given to buyers. This led to the number of apartments in Belaire increasing to 564 from 384.
With inflation still remaining over 9% Planning Commission deputy chairman Montek Singh Ahluwalia said, "There is slight decline in inflation. It is still on high side. We have to be vigilant. Its good that it is gradually declining"
New Delhi: Encouraged by the marginal decline in rate of price rise to 9.22% in July, finance minister Pranab Mukherjee today said inflation pressure would ease further on back of good monsoon, reports PTI.
"I am quite confident that good monsoon will ensure moderation of inflationary pressure," he told reporters pointing out that the government and the Reserve Bank of India (RBI) are working in tandem to contain prices.
"Inflationary pressure is in the system and we shall have to make effort to have the inflationary pressure at an acceptable moderate level for which we are working in tandem with the Reserve Bank," Mr Mukherjee told reporters here.
His comments came after release of data which reported headline inflation for July at 9.22%, down from 9.44% in June.
"The measures taken to remove supply constraints in some of the agricultural products and the monetary policy adopted by the RBI will help bring about moderation of inflationary pressure and at the same time it will ensure the average ratio of liquidity of the legitimate credit requirement of the industry and other sectors...," Mr Mukherjee said.
He pointed to the decline in inflation of both food and non-food primary articles in July and termed it as 'good news'.
Commenting on the July numbers, Planning Commission deputy chairman Montek Singh Ahluwalia said inflation still continues to remain high.
"There is slight decline in inflation. It is still on high side. We have to be vigilant. Its good that it is gradually declining," Mr Ahluwalia said.