The Tata Group is currently contemplating a buyback of its stake in the content distribution platform from Temasek Holdings. This is being considered as a potential alternative to delaying the IPO of Tata Play Ltd. Ongoing discussions regarding this matter are taking place, which would also provide Temasek with an opportunity to exit that they have been waiting for. Tata Play is known for its provision of pay television and over-the-top streaming services and has successfully established a significant presence across the nation with 23 million connections.
Tata Group is considering an offer to buy back a stake in its entertainment content distribution platform from Temasek Holdings Pte as the Indian conglomerate weighs postponing Tata Play Ltd.’s initial public offering according to sources
Tata Group is contemplating whether to delay the planned Tata Play listing because of market conditions sources said. Instead, Tata Group has started discussions with Temasek around a deal that would give the Singaporean state investor an opportunity for a long-awaited exit from its investment in the platform formerly known as Tata Sky sources said.
Temasek owns about 20% of the content distribution platform sources said. A joint venture between Tata Group and Walt Disney Co.’s Twenty-First Century Fox Inc. Tata Play provides pay television via set-top boxes and over-the-top video streaming through its app according to the conglomerate’s website.
Tata Play has recently received the green light from regulators to proceed with the IPO the people said. Its listing would have been the first among the $128 billion Tata Group’s businesses to go public since Tata Consultancy Services Ltd.’s $1.2 billion IPO in 2004.
Discussions between Tata Group and Temasek are ongoing and could still fall apart. Tata Play could still opt for a listing should market conditions improve sources added
Last year Tata Play filed confidentially with India’s capital markets regulator becoming the first Indian company to take advantage of the option to file IPO documents without making sensitive information public.
Incorporated in 2001 Tata Play expanded beyond traditional pay television and PVR services with Tata Play Binge an OTT streaming service accessible via the Amazon Fire TV Stick Tata Play Binge+ Smart Set Top Box Android TV and its mobile app the Tata Sons site shows. It has a pan-India footprint of 23 million connections.
Temasek first invested in Tata Sky as it was known at the time in 2007 according to its website.
