Tata Sons Seeks Approval To Increase Stake In Tata Play To 70%

Tata Sons, the promoter of Tata Group, has requested approval from the fair-trade regulator CCI to acquire an additional 10% stake in Tata Play, the DTH operator, from Singapore's sovereign wealth fund, Temasek Holdings.

Currently, Tata Sons holds a 60% stake in Tata Play. Upon completion of the deal, its ownership in the entertainment content distribution platform will increase to 70%.

Tata Sons Pvt Ltd. is an investment holding company, registered as a core investment company with the Reserve Bank of India and classified as a 'Systemically Important Non-Deposit-Taking Core Investment Company.'.

"The proposed transaction relates to Tata Sons' acquisition of 10 percent shareholding in Tata Play from Baytree Investments (Mauritius) Pte Ltd," said a notice filed with the Competition Commission of India on Thursday.

Baytree Investments (Mauritius) is an affiliate of Singapore's sovereign wealth fund, Temasek Holdings.

The proposed transaction is being notified to the Commission under Section 6(2) and Section 5(a) of the Competition Act, 2002. Tata Sons said.

Section 6(2) of the Competition Act pertains to any person or enterprise notifying the CCI before entering into a combination, while Section 5(a) defines a combination as the acquisition of one or more enterprises or the merger or amalgamation of enterprises that exceed a certain threshold.

Tata Play is one of India’s top content distribution platforms, offering pay TV and over-the-top services via Tata Play Binge, its OTT platform.

In its submission to the CCI for reviewing the proposed deal, Tata Sons and Tata Play stated that the transaction will not negatively impact competition in any relevant market.

Accordingly, the definition of the relevant market may remain open; the CCI may assess the transaction in the context of wired broadband internet services in India and the complementary link between internet access provided by Tata Sons through its affiliates and web-based services like Tata Play Binge, it added.

(With PTI Inputs)