Dish TV re-evaluating Videocon d2h merger


MUMBAI: The Dish TV-Videocon d2h merger had reached the final stage with the Ministry of Information and Broadcasting (MIB) giving it the green signal. Then, suddenly on 22 December, Dish TV announced that the union would be delayed beyond 27 December 2017 citing technical reasons. Now those reasons–it basically is revaluating the deal–are likely to hold up the fusing of the two DTH operators even further.

Dish TV yesterday informed the BSE that it had told its advisors–which include financial advisor Morgan Stanley, E&Y, SR Batliboi & Co and Luthra & Luthra Law Offices-to re-examine the deal terms within 60 days.

It said that it was taking this step as “it has come to our knowledge that certain entities belonging to the Videocon group, including the promoters of Videocon D2h Ltd, have become subject to insolvency and/or enforcement proceedings by lenders. The company is evaluating as to whether there is any impact of the same on its rights and obligations under the definitive agreements, and consequential effects on the transactions contemplated.”

The companies had announced a merger in November 2016 tom-tomming the benefits that would accrue to the two if they went ahead. And both companies went about the process getting the various regulatory approvals required. In early March 2017, the merger got the NOC from the BSE and the NSE, Competition Commission of India clearance on 4 May 2017, shareholder approval through a meeting convened by the National Company Law Tribunal (NCLT) on 12 May 2017, and the NCLT green flag on 27 July 2017, and the MIB go ahead on 15 December 2017.

As per the terms of the merger Dish TV Videocon d2h was to issue 857.79 million fresh shares. Shareholders of Videocon d2h were to get 2.02 shares of Dish TV Videocon for every share of Videocon d2h. D Dish TV shareholders would own 55.4 per cent shares of the merged entity while Videocon d2h would own the remaining 44.6 per cent.

Dish TV is pressing the pause and review button at a time when at least two transactions in the direct-to-home segment have been completed.  Late last year, private equity firm Warburg Pincus picked up a 20 per cent piece of Airtel DTH for a handsome price of $350 million valuing the entire operation at $1.7 billion. Then Delhi-based Pantel Technologies and Veecon Media bought out all the losses, debt, and liabilities of Reliance Big DTH from the Anil Ambani group, bringing to a close a long struggle by the latter to exit the DTH business.

Also Read :

Dish TV-Videocon d2h merger date postponed

DTH's year of consolidation

DTH subscriber growth down in second quarter

Latest Reads

Dish TV plans to add 30 Tamil channels

MUMBAI: Direct-to-home (DTH) operator Dish TV has planned to come up with 30 popular Tamil channels on its platform for the customers in Tamil Nadu. This will leave customers with a wider choice of entertainment in their language of comfort.

DTH DTH Operator
Star India, Dish TV agree on carriage deal

MUMBAI: According to media reports, Star India and Zee-backed DTH operator Dish have buried the hatchet and agreed on a new carriage deal. The matter, it appears, has been settled out of court. Even before the disconnection date became effective, the broadcaster had moved Telecom Disputes...

DTH DTH Operator
Dish TV-Videocon d2h lists GDRs on London stock exchange

MUMBAI: When Dish TV-Videocon d2h Ltd announced their merger, a presentation to investors had stated that the merged entity would issue global depository receipts (GDRs) on the Luxembourg exchange. However, probably what it meant was the London stock exchange. Which is what happened last week.

DTH DTH Operator
Dish TV promoter cos offer to buy 26% from public shareholders

The promoter group entities of Dish TV India Ltd (Dish TV) have made an offer to buy an additional 26 per cent equity stake from public shareholders of the direct-to-home (DTH) operator for Rs 3,701 crore.

DTH DTH Operator
TDSAT allows broadcasters to disconnect signals to RBTV

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has withdrawn the interim protection granted to direct-to-home (DTH) operator Reliance Big TV (RBTV) by allowing broadcasters to disconnect signals for non-payment of dues.

DTH DTH Operator
Dish TV announces fresh Videocon d2h Nasdaq delisting date

Dish TV India Limited (Dish TV), as successor to Videocon d2h, announced a revised timetable for the anticipated delisting of Videocon d2h American depositary shares (ADSs) from the Nasdaq Global Market (Nasdaq). The timing of the global depositary shares (GDS) effective date (as defined below)...

DTH DTH Operator
Star India, Airtel Digital TV bury the hatchet

Direct-to-home (DTH) operator Airtel Digital TV and Star India, in the aftermath of a public spat, have joined hands and reached an agreement.

DTH DTH Operator
Tata Sky aims to drive up ARPU with international content

MUMBAI: Direct-to-home (DTH) service Tata Sky has launched its newest offering, Tata Sky World Screen—a handpicked bouquet of international entertainment content available from 16 March 2018. 

DTH DTH Operator
Oct-Dec quarter sees highest pay TV DTH subscriber growth in 2017

BENGALURU: After the debacle created by demonetisation in November 2016 and then the implementation of the new Goods and Services Tax regime in July 2017, the fortunes of the pay TV direct-to-home (DTH) industry seem to be improving in terms of subscriber addition. Quarterly data released by the...

DTH DTH Operator

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories