Star India looks to up stake in Tata Sky

[Sathish]

NEW DELHI: Star India is making an attempt to raise its effective holding in direct-to-home broadcaster (DTH) Tata Sky by taking advantage of foreign investment rule changes made about a year ago. The Rupert Murdoch-controlled company has asked the Foreign Investment Promotion Board (FIPB) for permission to buy a 49% stake in TS Investments, an investment firm of the Tata Group, which, in turn, will buy a 20% stake in Tata Sky for Rs 324 crore.

Current rules cap direct foreign investment in an Indian DTH operator at 20%. Foreign funds are allowed to buy up to an additional 29%. But Star is hoping to benefit from guidelines announced in February 2009, which said that investment through companies owned and controlled by Indians would not count in the calculation of foreign investment.

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[Anish]

So we can expect some more good news From tata(sky as Star would give even more power to them:jump:

[Rdev]

Stars investment will also back cash flows for Tata's operating and administrative expenses hence other activities can be concentrated by the firm to help consumer in a better way.