MUMBAI: The Sunil Mittal-owned Bharti Airtel has responded to a query from the Bombay stock exchange (BSE) regarding news reports that it is in advanced talks to acquire the lossmaking DTH market leader and Tata group company Tata Play, led by Harit Nagpal.
The company told the BSE that from time to time it or its subsidiaries evaluate various opportunities. And that it saw no reason why it should make any disclosures now, keeping in mind Securities Exchange Board of India (Sebi) regulations for listed companies.
In a letter addressed to both the National Stock Exchange and BSE, it responded as follows:
“We wish to clarify that the Company (on its own or through its subsidiary companies) evaluates various opportunities of alliances/ acquisitions and other similar avenues as per its requirements from time to time, in the ordinary course of business. There is no material event/ information that requires disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (‘SEBI Listing Regulations’). As a responsible corporate that follows the highest standards of corporate governance, the Company is fully conscious of its disclosure obligations under SEBI Listing Regulations and will duly make appropriate disclosures in compliance with applicable laws.”
It may be recalled that The Economic Times had reported a couple of days ago that Tata Sons which holds a 70 per cent stake in Tata Play is looking at exiting along with Walt Disney, which holds 30 per cent. The DTH provider’s valuation has reportedly plummeted from around $3 billion pre-covid to around $1 billion today. Tata Sons had bought out Singapore’s Temasek Holding's 10 per cent investment in Tata Play for around $100 million in April 2024. Bharti Airtel is expecting to close the purchase at the same valuation, the Economic Times report had stated.
Bharti Airtel owns the second largest DTH platform in India in Airtel DTH and the Tata Play acquisition will reportedly bolster its subscriber base.
