MUMBAI: Star India Holdings, the Indian subsidiary of News Corp, has withdrawn its proposal to up its stake in the joint venture direct-to-home (DTH) company, Tata Sky.
This follows government‘s decision last month to defer Star‘s FIPB proposal to further invest Rs 3.24 billion in Tata Sky where it already holds a 20 per cent stake.
Indiantelevision.com had earlier reported that Star India had applied for clearance from the Foreign Investment Promotion Board (FIPB) to buy a 49 per cent stake in Tata Group’s investment firm TS Investments.
TS Investments, in turn, was to buy a 20 per cent stake in Tata Sky for Rs 3.24 billion. This would have effectively given Star India an additional 9.8 per cent stake in Tata Sky, increasing News Corp’s total holding in the DTH company to 29.8 per cent from its present 20 per cent.
Tata group holds 70 per cent stake in Tata Sky, while Singapore-based PE firm Temasek holds the remaining 10 per cent.
Meanwhile, What’s On India Media got the FIPB approval to raise Rs 55.7 million by issuing and allotting preference shares to carry out the business of uplinking a non-news and current affairs TV channel.
Broadband services provider Tikona Digital Network also got the nod to enhance the FDI to 74 per cent by issue of compulsorily convertible debentures (CCDs) and equity shares to existing foreign investors and new foreign investors. Tikona will be able to raise up to Rs 11.42 billion.
Meanwhile, FIPB asked Maa Television Network to access automatic route to regularise the 20 per cent existing shareholding (18.60 per cent direct and 1.31 per cent indirect NRI holding). This would not have involved any FDI inflow.
