China's Tencent Holdings Ltd is set divest its entire stake in Dream11's parent company, Sporta Technologies Ltd, to adhere to regulations on Chinese investments, the Mint has reported.
The Singapore-based Tiga Investment Pte Ltd will acquire Tencent stake for over $150 million, the report cited sources as saying. Tencent's holding in Dream11 and the specifics of the planned sale remain unclear, it said.
Moneycontrol could not verify the report independently.
The move is in response to Press Note-3 (PN-3), a notification that restricts investments from neighbouring countries in response to border tensions with China. While the Economic Surveys suggested a willingness to welcome select Chinese foreign direct investments, government officials have said scrutiny of such investments would remain stringent.
Tiga’s acquisition has received clearance from the Competition Commission of India (CCI) through its expedited approval process. The CCI noted that there are no horizontal overlaps, vertical linkages, or complementary business activities between the parties involved, indicating that the transaction is unlikely to adversely affect competition in India, the report said.
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