The merger is expected to create a leading cable and satellite distribution platform in IndiaImage: Shutterstock
The news was in the air for a while. It is now official. Videcon d2h is merging with Dish TV and creating, in the process, a large d2h player -- Dish TV Videocon -- with a market share of close to 45 percent. The Board of Directors of Dish TV and Videocon d2h today approved the amalgamation of Videocon d2h into Dish TV. 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. This would result in Dish TV shareholders owning 55.4% of Dish TV Videocon and Videocon d2h shareholders owning the rest.
According to the press release from Dish TV, Dish TV Videocon will be led by Jawahar Lal Goel as Chairman and Managing Director. The merger is expected to create a leading cable and satellite distribution platform in India. Dish TV Videocon will serve 27.6 million net subscribers in India out of a total of 175 million TV households in India. The combined entity’s revenue, as of March 31, 2016, was Rs. 5,915 crore and 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, the press release said.
“We are pleased to announce this combination at a time when the cable & satellite Industry in India is rapidly progressing on the path to digitisation. This transaction, that brings together two powerhouse brands of the cable & satellite Industry,” Goel said.
Saurabh Dhoot, Executive Chairman of Vd2h said: “Since the commercial launch of Videocon d2h 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.”
Once the transaction is complete Dish TV Videocon shall continue to be listed on the National Stock Exchange of India and the BSE Limited in India and on the Luxembourg Stock Exchange in the form of GDRs. Holders of Videocon d2h ADRs will receive their new shares in the form of GDRs, unless they elect to receive and hold new shares directly, the press release said. The amalgamation process is expected to be completed by second half of 2017.