Reliance-Disney JV announcement now likely on Nov 18; here’s why

New Delhi: Certain statutory obligations on the part of parting companies in the Reliance-Disney joint venture are delaying the announcement of the merger's completion to Monday, November 18, 2024, highly placed sources told BestMediaInfo.com.

Quoting sources, BestMediaInfo.com reported on Sunday that the announcement would occur on Wednesday, November 13.

“All the preparations are complete on the part of Reliance and Disney. The teams are internally aligned,” multiple sources said. 

However, sources informed on Wednesday that the announcement is delayed owing to a few obligations on the part of parting companies.

Viacom18, which is merging with Star India Private Limited, is a company jointly held by RIL (directly and indirectly through TV18 Broadcast Limited), Paramount Global (through MTV Asia and Nickelodeon Asia), and BTS group (through BTS Investment 1 Pte. Ltd). 

As a part of the merger, RIL is acquiring 10.89% equity shareholding in Viacom18 from MTV Asia Ventures (India) Pte. Ltd. and 2.12% equity shareholding in Viacom18 from Nickelodeon Asia Holding Pte. Ltd. termed Paramount buy-out. 

Paramount Global is exiting its investment in Viacom18 pursuant to the Paramount buy-out.

BTS 1 (Bodhi Tree Systems) holds in certain stake in Viacom18 and is a company incorporated under the laws of Singapore. Asia Initiatives holds 100% of the ordinary equity shares of BTS 1. Asia Initiatives is jointly held by James Murdoch’s Lupa Systems and Uday Shankar. Lupa Systems (together with its downward affiliates) along with Shankar, are collectively referred to as the BTS group.

While Shankar will take over as the Vice Chairman of the joint entity, both parties told CCI that BTS group has not acquired any shareholding in the JV.

All these parting companies in the existing JVs will have to complete the formalities in their respective jurisdiction, like intimation to their stock exchanges etc, said a source.

When asked if the quarterly results of The Walt Disney Co scheduled to be announced on November 14 have any role to play, a source denied it.