The report shows that the transaction is expected to be implemented through a stock swap arrangement.
Sunil Mittal is one of India’s wealthiest people, who runs Bharti Airtel, the country’s second largest telecommunications company. Indian billionaires have been expanding their business to lead the business world. However, one of his businesses is currently at a loss. Therefore, Bharti Airtel held talks with Tata Group to merge its lost businesses. This is Bharti Telemedia, which is Airtel’s Direct Causes Home (DTH) business. It provides cable and satellite TV services.
Airtel said in a regulatory filing that it is in discussions with Tata Play to merge Bharti Telemedia with it. “We hope to propose that Bharti Airtel and Tata Group are under bilateral discussions to explore potential deals to realize the combination of Tata Group’s DTH business under Tata Play Ltd, with Airtel’s subsidiary Bharti Telemedia, and Airtel’s subsidiary Bharti Telemedia, which is acceptable in all political parties.”
It doesn’t share any other details. However, the report shows that the transaction is expected to be implemented through a stock swap arrangement. If completed, this will be the second merger in the DTH field, second only to the TV-Videocon D2H merger in 2016.
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Bharti Telemedia vs Tata Play Loss
Bharti Telemedia’s turnover in fiscal 24 was Rs 30,447 crore, while its after-tax loss was Rs 759 crore. In the fiscal year ended March 31, 2024, Tata Play (formerly known as Tata Sky) consolidated losses expanded to Rs 3539 crore as revenue from the business fell 4.32 per cent to Rs 430462 crore. The company reported that in fiscal 23, net loss was Rs 10.525 crore per year and its operating revenue was Rs 44,991.9 crore. Baytree Investments (Mauritius) PTE owns 10% of Tata Play.
(Input with PTI)
