Tata Group considers acquisition of Temasek's stake in Tata Play: Report

Tata Group is reportedly considering a proposal to repurchase a stake in its entertainment content distribution platform, Tata Play Ltd, from Singapore's Temasek Holdings Pte, said a report.

The conglomerate is contemplating a potential delay in the planned initial public offering (IPO) of Tata Play due to market conditions, said a report by Bloomberg.

Instead, Tata Group has initiated discussions with Temasek to explore a deal that would provide the Singaporean state investor an opportunity to exit its investment in the platform, formerly known as Tata Sky.

According to sources familiar with the matter, Temasek currently holds approximately a 20 per cent stake in the content distribution platform. Tata Play, a joint venture between Tata Group and Twenty-First Century Fox Inc (previously owned by Walt Disney Co), offers pay television services through set-top boxes and over-the-top video streaming via its app.

Tata Play recently obtained regulatory approval to proceed with its IPO, which would have marked the first public listing of a Tata Group business since Tata Consultancy Services Ltd’s IPO in 2004, raising $1.2 billion.

Discussions between Tata Group and Temasek are ongoing, and a final agreement has not been reached. The option for Tata Play to proceed with the IPO remains open if market conditions improve, the report added.

In 2022, Tata Play took advantage of a provision allowing Indian companies to file IPO documents confidentially with Sebi. This made Tata Play the first Indian company to utilise this option, which allows sensitive information to remain undisclosed during the initial filing stage.

Established in 2001, the company introduced Tata Play Binge, an over-the-top (OTT) streaming service accessible through various platforms such as the Amazon Fire TV Stick, Tata Play Binge+ Smart Set-Top Box, Android TV, and its mobile app. According to information available on the Tata Sons website, Tata Play boasts a widespread presence across India, with 23 million connections.

Temasek first invested in Tata Sky (as it was previously known) in 2007, according to information on its website.

Last month, the Securities and Exchange Board of India (SEBI) granted approval for the initial public offering (IPO) of Tata Technologies, marking the first public issue from the Tata group since July 2004 when Tata Consultancy Services (TCS) went public.

The IPO of Tata Technologies will consist solely of an offer for sale (OFS), in which existing shareholders will sell up to 9.57 crore equity shares, representing around 23.60 per cent of the company's paid-up share capital.

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