Sony Pictures Entertainment, the television and film production and distribution company of Japanese giant Sony, is in the process of a significant restructuring of its Indian arm, Sony Entertainment Television India.
The two-pronged recast will see SET India acquiring SET Singapore and the subsequent listing of SET India on the stock market.
Confirming this, sources close to the development said the promoters of SET India would meet in mid-June to finalise the nitty-gritty of the proposed acquisition as well as the public float plan.
"SET India is in the process of conforming to the regulatory requirements for the restructuring. In all likelihood, the acquisition of SET Singapore by SET India will not involve any financial transaction.
It will be a share swap deal. The process should complete in two months time," they added.
Ron Sato, vice president, corporate publicity, Sony Pictures Television International, declined to comment.
The shareholding pattern of SET India and SET Singapore are identical. Sony Pictures holds 61 per cent stake in each of these companies, while the balance is being held by local investors and foreign institutions.
Two years ago, Sony Pictures had deferred the restructuring as it found the timing of a public issue unfavourable, sources said.
At that time, SET India had obtained clearance from the Foreign Investment Promotion Board to acquire 100 per cent shares of SET Singapore through a share swap transaction.
It was proposed that one share of SET India would be exchanged for 16 shares of SET Singapore. It is, however, not unknown whether the share swap ratio will remain the same when the deal takes place.
Sources added Indian promoters, who have been looking out for an exit option for quite sometime now, might sell their stakes through the public offer. The combined shareholding of the promoters is 32 per cent.
Indian promoters include the Singapore-based banker Rakesh Agarwal, Shemaroo Films managing director Raman Maroo, World Media group director Sudesh Iyer, MobiApps Holding's Jayesh Parekh and actor Jackie Shroff.
When it lists, SET India will join the league of Zee Telefilms, Sun TV, UTV, Balaji Telefilms, Adlabs Films and a few others. Its subsidiary Sri Adhikari Brothers is already a listed entity.
SET Singapore has invested in acquisition of television serials and Hindi feature films, besides ICC telecast rights for India and other parts of Asia till 2007, including the upcoming cricket world cup.
Sources revealed benefit of all major investments of SET Singapore would accrue to SET India in the coming years through the process of consolidation.
