The Indian government has approved a proposal from the News Corp-affiliated Star India Group to increase the level of foreign direct investment in the DTH provider Tata Sky.
Star has been granted permission to invest Rs324 crore (US$68.7m) to acquire up…
The Indian government has approved a proposal from the News Corp-affiliated Star India Group to increase the level of foreign direct investment in the DTH provider Tata Sky.
Star has been granted permission to invest Rs324 crore (US$68.7m) to acquire up to 49% of TS Investment Ltd, a holding company currently owned 100% by Tata Sons, which is the majority 70% shareholder in Tata Sky.
Star, which owns 20% of Tata Sky will then use TS Investments to acquire more shares in the DTH provider.
This transaction is permitted under new Indian regulations that allow a foreign investment in a holding company that is at least 51% Indian-owned to be held outside consideration when calculating foreign ownership of a subsidiary, in this case Tata Sky.