Dish TV India Limited (Dishtv), Asia Pacific’s largest direct-to-home (DTH) company and part of the Essel Group has received the final approval for closing of the merger of Videocon d2h with DishTV.
The Ministry of Information and Broadcasting (MIB) had approved the requests made by the company for completion of the transaction for the creation of the largest listed media company in India taking into consideration the last reported revenue and EBITDA numbers of the two DTH players on a pro-forma basis, said a company statement.
Dish TV andVideocon d2h (Vd2h) reported separate revenue and EBITDA numbers which at a pro-forma level add up to ₹60,862 million and ₹19,909 million for FY17.
Following the amalgamation, the combined entity will be renamed as DishTV Videocon Limited.
The combination will have scale similar to leading global cable and satellite players in terms of subscribers. Dish TV Videocon Limited (DishTV Videocon) would serve more than 29 million subscribers in India as per its combined share on September 30, 2017.
Commenting on the development, Mr. Jawahar Goel, CMD, DishTV India Limited, said, “It has been a long journey since the announcement of the agreement between the two companies a year back. We would like to thank the Ministry of Information and Broadcasting, the National Company Law Tribunal, the Competition Commission of India, the Securities and Exchange Board of India, the Stock Exchanges and all other stakeholders for showing their trust in us. I would also like to express our gratitude to our shareholders for standing by us through the transaction and believing in us to take the combined entity to the next level going forward.”
The combined entity is expected to provide better synergies and growth opportunities through deeper after-sales, distribution and technology capabilities and will also become a more effective partner for TV content providers in India.
Mr. Anil Dua, Group CEO, Dish TV India Limited, said, “Together, Dish TV and Videocon d2h are going to write history as we embark on this journey of delighting our ‘29 million and growing’ customer base. It is an exciting way ahead as we get this opportunity to leverage the individual strengths of the two organisations. I feel reassured looking at the formidable combination of these two talented teams that are now going to be working together towards a shared vision and common goals.”
The two companies had entered into definitive agreements in November 2016 for amalgamation of Vd2h into Dish TV through a Scheme of Arrangement amongst Dish TV, Vd2h and their respective shareholders and creditors.