Temasek sells 10% stake, out of Tata Play picture
Tata Sons has raised its shareholding in Tata Play to 70% by acquiring Singaporean government-owned investment firm Temasek's 10% stake in the company for about $100 million (close to ?835 crore), said people in the know.
The direct-to-home (DTH) firm has been valued at $1 billion, down from its previous pre-pandemic valuation target of $3 billion.
I&B Min told About New Shareholding
The DTH company is crucial for the salt-to-software conglomerate, Tata Group, as it serves as its sole consumer-facing business in the media and entertainment sector.
Tata Play, India's largest DTH firm with 21 million subscribers, has intimated the Ministry of Information and Broadcasting (MIB) about the change in shareholding, according to one of the persons, who did not wish to be identified.
Under the DTH rules, licence holders are required to inform the ministry about a change in shareholding or partnership or foreign direct investment pattern.
«Tata Sons has bought out Temasek's stake in Tata Play. The DTH company has intimated the MIB about the change in shareholding,» a senior media executive said on condition of anonymity.
Tata Sons, Temasek and Tata Play declined to comment on the development.
With Temasek's departure, Tata Play will become a 70:30 JV between Tata and Walt Disney, which is also looking to exit the TV distribution company. Tata Sons previously held a 60% stake in the company, while Disney held a 30% stake.
Tata Sons is also believed to have held talks with Disney to buy out the latter's stake. Disney
