According to Jawahar Lal Goel, Chairman and Managing Director, Dish TV, this combination comes at a time when the cable and satellite industry in India is rapidly progressing on the path to digitisation.
India’s largest direct-to-home (DTH) player, Dish TV, and NASDAQ- listed Videocon d2h (Vd2h) have decided to merge operations to form the single largest pay TV operator with 27.6 million net subscribers.
Post the proposed transaction, the merged entity will be renamed Dish TV Videocon Ltd. In terms of the new shareholding structure, Essel Group will have 55.4% stake while the balance 44.6% will be held by Videocon, which is owned by the Dhoot brothers.
According to Jawahar Lal Goel, Chairman and Managing Director, Dish TV, this combination comes at a time when the cable and satellite industry in India is rapidly progressing on the path to digitisation. “This transaction, that brings together two powerhouse brands will provide us with a gateway to harness growth opportunities in an ultra competitive multi-player environment. This combine will enhance value for all stakeholders – consumers, government, employees and shareholders,” he said.
While Dish TV Videocon will be led by Jawahar Lal Goel as CMD, the Vd2h principals will have the right to nominate two directors on the Board of merged entity, with one being vice chairman and the other a deputy managing director.
Saurabh Dhoot, Executive Chairman, Videocon d2h, said this strategic combination will create a solid platform with decisive and proven leadership at the front would lead Dish TV Videocon to create value for all stakeholders. “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.”
Offering a significant room for growth, the combined entity would have revenue of Rs 5,915.8 crore for the fiscal year ended March 31, 2016. positioning it as a leading media company in India. The proposed transaction 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 television content providers in India.
At the close of the proposed transaction, the current promoters of Dish TV will continue as promoters of Dish TV Videocon. The Dish TV principals are also in discussion with the Vd2h principals to purchase some of the Vd2h principals’ shares in Dish TV Videocon post the amalgamation, details of which are likely to be finalised soon.
Post completion of the transaction, Dish TV Videocon will continue to be listed on the National Stock Exchange of India (NSE) and the BSE Ltd in India and on the Luxembourg Stock Exchange in the form of global depository receipts (GDRs). In the scheme, holders of Vd2h Americian depository receipts (ADRs) will receive their new shares in the form of GDRs, unless they elect to receive and hold new shares directly.
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