Star takes back the Tata Sky JV plan

Star takes back the Tata Sky JV planIndian government has given a ‘no entry’ signal to Star’s proposal for a collaborated effort with the Tata Group to increase its stake in the country’s entertainment industry. On the other hand, Star claimed that it was the company’s own decision in consideration with the Foreign Investment Promotion Board (FIPB).

The proposal would have helped Star in buying 49% in the JV, and then purchasing a 20% stake in Tata Sky, leading to an additional 9.8% in the operator. Star Corp., currently holds 20% stake Tata Sky, with the Tata Group holding 70% and Temasek Holdings having the balance 10%.

Had this proposal been possible, Star would have got equal voting rights to Tata. It was thought to be one of the government’s main concerns over the deal.

However, with the latest amendments in the foreign investment rules, the government now allows foreign stakes in Indian DTH operators.