Videocon d2h and Dish TV to merge into a single company

Videocon Group’s DTH arm Videocon d2h will merge with Essel Group-owned Dish TVin an all share deal to create a new entity -Dish TV Videocon.The Dhoot brothers-owned Videocon will own 44.6% in the merged entity , while the billionaire Subhash Chandra’s Essel Group will have 55.4% stake.

The board of directors of Dish TV and Videocon d2h today approved a scheme of arrangement for the amalgamation of Vd2h into Dish TV and the execution of definitive agreements in relation to such amalgamation, said a joint statement issued by both the DTH operators on Friday.

The combined entity would be positioned as the leading DTH operator in the country . It had a revenue of Rs 5,916 crore on a pro-forma basis for the fiscal year ended March 31, 2016.

Pursuant to the scheme, Dish TV Videocon will issue over 857 million shares as consideration for the scheme and Videocon d2h shareholders shall be allotted just over 2 new shares of Dish TV Videocon for every one held in Vd2h.

According to the scheme, Dish TV shareholders would be owning over 1,066 million existing shares or 55.4% of Dish TV Videocon, with Vd2h shareholders owning over 857 million new shares or 44.6%.

The transaction, which is expected to be completed in the second half of 2017, would be subject to regulatory approvals from various stakeholders such as Sebi, CCI, high court of Bombay , ministry of information and broadcasting, stock exchanges as well as shareholders and creditors of both companies.

 

SOURCE: PTI