Competition Law Update August 21, 2012

Issue of 'Control' discussed by CCI in its recent order

Context

In its order dated 9th August, 2012, Competition Commission of India ("Commission") approved the proposed acquisition of equity shares of Multi Screen Media Private Limited ("MSM India") by SPE Mauritius Holdings Limited and SPE Mauritius Investments Limited (together "Acquirers") from Grandway Global Holdings Limited and Atlas Equifin Private Limited (together "Sellers").

Prior to the acquisition, while the Acquirers collectively held 62 percent of the equity share in MSM India, the Sellers held 32.39 percent and the remaining equity is held by FIIs. The Acquirers have the right to nominate three directors on the Board, the Sellers two directors and the FIIs have no such right.