Industry

Dish TV, Videocon d2h to merge

India’s direct-to-home company, Dish TV, and Nasdaq-listed Videocon d2h will merge to create a leading cable and satellite distribution platform, valued at about Rs.17,000 crore.

The merged entity, to be renamed as Dish TV Videocon Limited, would serve 27.6 million subscribers in India, out of a total of 175 million TV households in India, highlighting a significant room for growth

The Board of Directors of Dish TV and Videocon d2h today approved the amalgamation of Videocon d2h into Dish TV, according to a company statement. Dish TV Videocon will issue 857.791 million shares and the Vd2h shareholders will be allotted 2.021 new shares of Dish TV Videocon for every one share held in Vd2h.

The all-stock deal will see Videocon d2h shareholders getting 2.021 new shares of Dish TV Videocon for every share they hold in Videocon d2h, resulting in Dish TV shareholders owning 55.4% of Dish TV Videocon and Videocon d2h shareholders the rest.

Dish TV Videocon will be led by Jawahar Lal Goel as chairman and managing director.

The Vd2h principals shall have the right to nominate two directors on the Dish TV Videocon Board, one of whom would be vice chairman and the other a deputy managing director.

The combined entity’s revenue, as of March 31, 2016, was Rs.5,915 crore and it had a operating profit of Rs.1,826 crore.

The proposed merger is expected to provide better synergies and growth opportunities and enable Dish TV Videocon to provide differentiated and superior service to all customers through deeper after-sales, distribution and technology capabilities, and also become a more effective partner for TV content providers in India, according to the statement.

Saurabh Dhoot, Executive Chairman of Vd2h said: “Since the commercial launch of Vd2h seven years ago, we have created a highly successful and high-growth DTH business with a solid foundation. We went public on the Nasdaq with a vision to take the company to the next level and emerge as a leading, innovative and highly profitable Indian media platform.

“Today we are very excited about this strategic combination to create a solid platform with decisive and proven leadership at the front would lead Dish TV Videocon to create value for all stakeholders, our customers, employees, and our shareholders.”

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Printable version | Sep 20, 2020 1:12:10 PM | https://www.thehindu.com/business/Industry/Dish-TV-Videocon-d2h-to-merge/article16442944.ece

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