Tata Sons seeks CCI clearance to take additional 10% stake in Tata Play

Tata Sons, promoter of Tata Group, has sought approval from fair trade regulator CCI for acquiring an additional 10 per cent stake in DTH operator Tata Play from Singapore's sovereign wealth fund Temasek Holdings.

Currently, Tata Sons owns a 60 per cent stake in Tata Play. After the completion of the deal, Tata Sons will have a 70 per cent holding in the entertainment content distribution platform.

Tata Sons Pvt Ltd is an investment holding company, which is registered as a core investment company with the Reserve Bank of India and classified as a "Systemically Important Non-Deposit Taking Core Investment Company".

"The proposed transaction relates to Tata Sons' acquisition of 10 per cent shareholding in Tata Play from Baytree Investments (Mauritius) Pte Ltd," said a notice filed with the Competition Commission of India (CCI) on Thursday.

Baytree Investments (Mauritius) is an affiliate of Singapore's sovereign wealth fund Temasek Holdings.

The proposed transaction is being notified to the Commission under Section 6(2) and Section 5(a) of the Competition Act, 2002, Tata Sons said.

Section 6(2) of the Competition Act pertains to any person or enterprise to notify the CCI before entering into a combination, while Section 5(a) defines a combination as the acquisition of one or more enterprises, or the merger or amalgamation of enterprises that exceed a certain threshold.

Tata Play, (formerly Tata Sky), is one of India's leading content distribution platforms providing Pay TV and Over-the-top (OTT) services through Tata Play Binge, an OTT platform.

In its submission to the CCI for the assessment of the proposed transaction, the parties (Tata Sons and Tata Play) asserted that the transaction will not adversely affect competition in any plausible relevant markets.

Accordingly, the definition of the relevant market may remain open, the CCI may assess the transaction in the context of wired broadband internet services in India and the complementary link between internet access provided by Tata Sons through its affiliates and web-based services like Tata Play Binge, it added.