Airtel Confirms ‘Bilateral Discussions’ with Tata for DTH Merger

Bharti Airtel, in response to media reporting the potential merger, confirmed on Wednesday’s filing to the stock exchange that negotiations are being conducted with Tata Group regarding the consolidation of their DTH businesses. 

In an exchange filing, Airtel stated that ‘we wish to submit that Tata Group and Bharti Airtel Business of Tata Play Limited (DTH) housed under Tata Group and Bharti Telemedia Limited, a subsidiary of Airtel, are in bi lateral discussions with the aim of forming a joint concern’. 

Airtel Digital TV, Tata Play share swap deal

In motivation to the share swap portions of the deal, publications had already assumed the consolidation would involve a majority share purchase with Airtel Mobile Network. 
Tata Sons Walt Disney and other shareholders of Tata Play would own 45-48 percent and nurture a controlling stake of 52–55 percent of the new incorporated company advanced by shareholders of told company. 
This consolidation is to the readjustment on operations of a reserve portion of its value added services by extending the scope of integrated wireless, wireline, broadband, and DTH services. 
Television users of Tata Play that have broadband service from Tata Sons are set to increase, under Bharti Telemedia’s Tata Play 19 million households and half a million broadband clients will be served.

After the merger, the resulting organization is expected to have an asset worth Rs 6,000-7,000 crores from Tata Play DTH business. Moreover, INR 7,000 crores is expected to be earned from the newly formed business entity, alongside the projected 35 million subscribers and FY24 profits.