IndianMascot
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Tata Opportunities Fund (TOF) LP - a captive PE fund of the $100 billion salt-to-software conglomerate -- is all set to buy a 5% stake in Tata Group's joint venture DTH company Tata Sky. TOF, which has a corpus of $600 million raised last month, will pay Rs 275 crore ($50 million) for a 5% stake, valuing the loss making JV at $1 billion.
This transaction is also expected to set a benchmark valuation, say industry experts as the company is likely to list next year. Tata Sky, set up seven years ago, competes in the fast growing direct-to-home TV-service market with Dish TV (part of the Zee Group) Bharti Airtel, Reliance Communications, Sun Group and Videocon.
Tata Sky is a joint venture between the Tata Group and Rupert Murdoch's STAR. Currently Tata Sons owns 60% while STAR owns a 30% stake. STAR is the television unit of News Corp, which also owns The Wall Street Journal and Dow Jones & Co. Singapore's sovereign investment fund Temasek through Bay Tree Investments owns the residual 10%, after it came on board in 2007 with a Rs 250 crore crore. TOF's investment implies that the company's valuation has doubled since the earlier round of funding.
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This transaction is also expected to set a benchmark valuation, say industry experts as the company is likely to list next year. Tata Sky, set up seven years ago, competes in the fast growing direct-to-home TV-service market with Dish TV (part of the Zee Group) Bharti Airtel, Reliance Communications, Sun Group and Videocon.
Tata Sky is a joint venture between the Tata Group and Rupert Murdoch's STAR. Currently Tata Sons owns 60% while STAR owns a 30% stake. STAR is the television unit of News Corp, which also owns The Wall Street Journal and Dow Jones & Co. Singapore's sovereign investment fund Temasek through Bay Tree Investments owns the residual 10%, after it came on board in 2007 with a Rs 250 crore crore. TOF's investment implies that the company's valuation has doubled since the earlier round of funding.
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