Tata Opportunities Fund Set To Invest In Tata Sky
tata Opportunities Fund is about to buy a 5% stake in Tata Sky for R275 Cr, TOI states.
Last Month, Tata Opportunities raised $600 Mn from sovereign investors, financial institutions, global corporates and high net-worth families.
TOF will be issued new shares and the existing partners are all to get diluted. But the dilution will be more for the Tatas.
The $1 Bn DTH company, Tata Sky is a JV between the Tata Group and Rupert Murdoch's STAR. Currently Tata Sons owns 60% while STAR owns a 30% stake. The remaining 10% was bought by Singapore's sovereign investment fund Temasek through Bay Tree Investments in 2007 for R250 Cr.
STAR is the television unit of News Corp, which also owns The Wall Street Journal and Dow Jones & Co.
Its speculated that, Tata Sky needs R500 Cr of equity infusion each year to service its debt obligation and meet its capital expenditure plans.
Tata Sky has 10.4 Mn subscribers. In January, WSJ reported that TATA Sky shall soon file an IPO to raise R2,500 Cr and has selected Kotak Mahindra Capital Co., Morgan Stanley and Citigroup to manage its offering.
TOF's investment implies that the company's valuation has doubled since the earlier round of funding.
Currently TOF is headed by former Temasek India MD Padmanabh "Paddy" Sinha.
Tata Opportunities Fund (TOF) is mandated to invest major share of its corpus in Tata Group Companies. It has raised institutional money from third party sovereign wealth funds, financial institutions, wealthy individuals and global corporations across North America, Asia and Middle-East.
Its last investment was in November 2011, when it picked up a 10% stake in Ginger Hotels.
According to Ficci-KPMG report, the television industry in India was estimated at R370 Bn in 2012, and is expected to grow at a CAGR of 18% over 2012-17, to reach R848 Bn in 2017. Aided by digitisation and the consequent increase in ARPUs, the share of subscription revenue to the total industry revenue is expected to increase from 66% in 2012 to 72% in 2017.
A recent report by Singapore based pay TV research firm Media Partners Asia (MPA) stated, digitization getting mandatory revenues for DTH operators are expected to treble to over $5 Bn by 2020.
It is estimated that India's DTH players raked in $1.5 billion last year.
Tata Sky and Airtel Digital TV have 19% and 18% market share, respectively .While Dish TV continues to lead with a market share of 27% in terms of gross additions, Videocon d2h leads in terms of incremental additions in 2012.. These four players together accounted for 88 per cent of total gross additions last year, said MPA.
In September 2012, with government relaxing the FDI limit in direct-to-home (DTH), Cable Networks and teleports to 74% from the earlier 49%, the industry is expected to attract larger foreign capital.
Dish TV, part of the Zee Network, is the only listed company in the space with a current market cap of R7,026 Cr and a subscriber base of 14.7 Mn.
In March, Bharat Business Channel, the DTH TV arm of the Videocon Group, received a go-ahead from the market regulator, Sebi, for its proposed R700 Cr IPO.
Last month, Bharti Airtel's DTH arm Airtel Digital TV is engaged in talks with PE majors - KKR, Carlyle and Bain Capital to sell off about 20% stake in its DTH business to raise about $200 Mn.
This month, DEN Networks Ltd, an Indian cable distribution company, raised a total of $160 Mn. Of which $110 Mn was from PE arm of Goldman Sachs and remaining through QIP.
Last year, Macquarie Bank and US based PE fund Providence Equity Advisors has acquired Star India's 17.3% stake in Hathway Cable & Datacom Ltd for R358Cr.
tata Opportunities Fund is about to buy a 5% stake in Tata Sky for R275 Cr, TOI states.
Last Month, Tata Opportunities raised $600 Mn from sovereign investors, financial institutions, global corporates and high net-worth families.
TOF will be issued new shares and the existing partners are all to get diluted. But the dilution will be more for the Tatas.
The $1 Bn DTH company, Tata Sky is a JV between the Tata Group and Rupert Murdoch's STAR. Currently Tata Sons owns 60% while STAR owns a 30% stake. The remaining 10% was bought by Singapore's sovereign investment fund Temasek through Bay Tree Investments in 2007 for R250 Cr.
STAR is the television unit of News Corp, which also owns The Wall Street Journal and Dow Jones & Co.
Its speculated that, Tata Sky needs R500 Cr of equity infusion each year to service its debt obligation and meet its capital expenditure plans.
Tata Sky has 10.4 Mn subscribers. In January, WSJ reported that TATA Sky shall soon file an IPO to raise R2,500 Cr and has selected Kotak Mahindra Capital Co., Morgan Stanley and Citigroup to manage its offering.
TOF's investment implies that the company's valuation has doubled since the earlier round of funding.
Currently TOF is headed by former Temasek India MD Padmanabh "Paddy" Sinha.
Tata Opportunities Fund (TOF) is mandated to invest major share of its corpus in Tata Group Companies. It has raised institutional money from third party sovereign wealth funds, financial institutions, wealthy individuals and global corporations across North America, Asia and Middle-East.
Its last investment was in November 2011, when it picked up a 10% stake in Ginger Hotels.
According to Ficci-KPMG report, the television industry in India was estimated at R370 Bn in 2012, and is expected to grow at a CAGR of 18% over 2012-17, to reach R848 Bn in 2017. Aided by digitisation and the consequent increase in ARPUs, the share of subscription revenue to the total industry revenue is expected to increase from 66% in 2012 to 72% in 2017.
A recent report by Singapore based pay TV research firm Media Partners Asia (MPA) stated, digitization getting mandatory revenues for DTH operators are expected to treble to over $5 Bn by 2020.
It is estimated that India's DTH players raked in $1.5 billion last year.
Tata Sky and Airtel Digital TV have 19% and 18% market share, respectively .While Dish TV continues to lead with a market share of 27% in terms of gross additions, Videocon d2h leads in terms of incremental additions in 2012.. These four players together accounted for 88 per cent of total gross additions last year, said MPA.
In September 2012, with government relaxing the FDI limit in direct-to-home (DTH), Cable Networks and teleports to 74% from the earlier 49%, the industry is expected to attract larger foreign capital.
Dish TV, part of the Zee Network, is the only listed company in the space with a current market cap of R7,026 Cr and a subscriber base of 14.7 Mn.
In March, Bharat Business Channel, the DTH TV arm of the Videocon Group, received a go-ahead from the market regulator, Sebi, for its proposed R700 Cr IPO.
Last month, Bharti Airtel's DTH arm Airtel Digital TV is engaged in talks with PE majors - KKR, Carlyle and Bain Capital to sell off about 20% stake in its DTH business to raise about $200 Mn.
This month, DEN Networks Ltd, an Indian cable distribution company, raised a total of $160 Mn. Of which $110 Mn was from PE arm of Goldman Sachs and remaining through QIP.
Last year, Macquarie Bank and US based PE fund Providence Equity Advisors has acquired Star India's 17.3% stake in Hathway Cable & Datacom Ltd for R358Cr.
