Tatas to trim tata sky stake, temasek to exit

[SUNIEL]

Tata sky investors new plan. See detail
http://business-standard.com/india/news/tatas-to-trim-tata-sky-stake-temasek-to-exit/493401/

 

[Mr.Bhat]

In detail

Tata Sons , holding company of the Tata Group , is looking at the option of offloading a part of its 60 per cent stake in the loss-making direct-to-home Tata Sky Ltd to private equity players and institutional investors and raise funds for the satellite TV company’s growth plans.
Private equity firm Temasek is exiting the company by selling its 10 per cent stake while Rupert Murdoch ’s Network Digital Distribution Services will pare part of its 30 per cent stake, according to a source close to the development. “The company has a good business model in the long run but for the next few years it will continue to make huge losses. It has negative net worth,” an investor who was approached for the stake sale told Business Standard.





The company started operations in August 2006 and the Tatas are looking at selling 10-15 per cent of their stake.
For fiscal 2011-12, Tata Sky made a net loss of Rs 298 crore on net sales of Rs 1,590 crore as compared to a net loss of Rs 470 crore on net sales of Rs 1,350 crore recorded in the previous fiscal. The source also said a proposal was made by the Tatas to Videocon to merge their direct-to-home businesses but the latter declined, seeking a better valuation.
When contacted, STAR India CEO Uday Shankar declined to comment. An email sent to Tata Sons did not elicit any response till the time of going to press. A spokesperson said over the phone that Tata Sons would not comment on the stake sale.
According to the source, Tata Sky needs Rs 500 crore of equity infusion each year to service debt and meet capital expenditure plans. As some shareholders want to cash out, the hunt is on for new investors. The Tatas will continue to hold a majority stake in the company while the other two investors, including Murdoch, will pare their investment substantially. The company would continue to use the Tata brand name, the source said.

 

[aumnamonarayan]

so i was right tata sky had talks to buy videocon d2h. now where r the people who said that i was lying?

 

[Technoglitch]

dino, read properly, tata sons are selling their stakes in ts

 

[aumnamonarayan]

mr read the full article properly, there is a line that tata sky was in taks with d2h to buy it

 

[aumnamonarayan]

The source also said a proposal was made by the Tatas to Videocon to merge their direct-to-home businesses but the latter declined, seeking a better valuation.
have not u read this line

 

[Technoglitch]

mr read the full article properly, there is a line that tata sky was in taks with d2h to buy it

i read the quotes and didnt read in website

 

[aumnamonarayan]

so that is why i say instead of hopping on just to bash me, its better to understand and read the point

 

[Shubham]

so with that Tata sky will change to Sky? TATA will leave it?

 

[aumnamonarayan]

shubham bro u did not understand the article. tata owns 60 percent stake in tata sky, they will offload just 10 to 15 percent to private investors so still tata would hold 45 to 50 percent stake. also star india will reduce its stake from 30 percent to may b 25 percent, this is all to raise money. once tata sky turns into a rrofitable venture then both star and tata will buy back stake
temasek is selling complete stake of 10 percent which it holds in tata sky
do not worry, tta sky will use this money to pay off debts