• Source:JND
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Airtel-Tata Play D2H Merger: Leading telecom services company Bharti Airtel on Wednesday said it is in talks with the Tata Group to merge its loss-making direct-to-home (DTH) business. Airtel is in discussions with the Salt-Software consortium to merge cable and satellite TV service provider Bharti Telemedia with Tata Play, according to a regulatory filing by the Sunil Bharti Mittal-led company.

While it did not share further details, the deal is expected to be implemented through a share swap arrangement, according to reports.

"We wish to submit that Bharti Airtel and Tata Group are in bilateral discussions to explore a potential transaction to achieve a combination of Tata Group's DTH business housed under Tata Play Ltd, with Bharti Telemedia, a subsidiary of Airtel, in a structure acceptable to all parties," the company said (quoted by PTI).

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Second Merger After Dish TV-Videocon d2h

If it is completed, it will be the second merger in the DTH sector after the Dish TV-Videocon d2h merger in 2016. Bharti Telemedia is expected to report revenue of Rs 3,044.7 crore in FY24, with a post-tax loss of Rs 75.9 crore.

Tata Play (formerly known as Tata Sky) reported a 4.32 per cent decline in revenue from operations to Rs 4,304.62 crore for the financial year ended March 31, 2024, as its consolidated loss widened to Rs 353.9 crore. The company had reported a net loss of Rs 105.25 crore in the previous financial year 2023, while its revenue from operations stood at Rs 4,499.19 crore.

Earlier, it had received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). However, this was delayed due to “certain considerations” as the Ministry of Information and Broadcasting (MIB) sought to change the company’s shareholding structure.

According to the last annual RoC filings, after Tata Sons, Network Digital Distribution Services FZ - LLC (NDDS) and TS Investments Limited are the second largest shareholders of the company, each holding a 20 per cent stake. Battery Investments (Mauritius) Private Limited holds 10 per cent stake in Tata Play.

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(With Inputs From PTI)