Tata Sons in talks with 1MG founders
Tata Sons – With the founders of 1MG, Tata Digital has a put-call option under which the Tatas may purchase the remaining stake for 448 crore. Tata Digital holds a stake in 1MG of over 63%.
Tata Digital invested in 1MG, a digital health startup, for a 58.7% share in June 2021, according to the software-to-steel conglomerate’s annual report for FY22. By the end of CY2021, it had added a holding of more than 4%, bringing its total stake to 62.97%.
It disclosed that it has paid 720 crore in cash to acquire the business. The original promoters who launched the business in 2015 remain the owners of the remaining 37%.
The management team’s equity shares and the Compulsorily Convertible Preference Shares (CCPS) held by other shareholders are covered by put-call option agreements, according to Tata Sons.
The purchase of a share through which control is acquired and a put-call option agreement are viewed as related transactions.