Are you a Dish TV owner or a Videocon d2h subscriber? we are all one family. Dish TV has planned to merge with its rival DTH operator Videocon d2h to create a new company called Dish TV Videocon. The merger will create a leading cable and satellite distribution platform in India.
The new direct-to-home company Dish TV Videocon, will now serve the combined subscriber base of around 27.6 million in India. That’s around 45 percent of the Indian DTH market share. The new company will be headed by Jawahar Lal Goel as chairman and managing director. It will have a revenue of about 59,158 million rupees.
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 percent shares in Dish TV Videocon and Videocon d2h shareholders owning 44.6 percent of the new company.
“We are pleased to announce this combination at a time when the cable and satellite industry in India is rapidly progressing on the path to digitization. This transaction, that brings together two powerhouse brands of the cable and satellite industry in India, will provide us with a gateway to harness growth opportunities in an ultra-competitive multiplayer environment,” said Jawahar Lal Goel, Chairman and Managing Director of Dish TV.
“Today, we are very excited about this strategic combination to create a solid platform with decisive and proven leadership at the front, leading Dish TV Videocon to create value for all stakeholders, our customers, employees, and shareholders,” said Saurabh Dhoot, Executive Chairman of Videocon d2h said.
Highlight of Dish TV merger with Videocon d2h
- The new combined DTH company will be called Dish TV Videocon.
- Jawahar Lal Goel will be the chairman and managing director of Dish TV Videocon.
- Dish TV shareholders will own 55.4 percent shares in the new company, whereas Videocon d2h shareholders will own 44.6 percent.
- Dish TV Videocon will have DTH market share of 45 percent.
The deal still needs approval from Securities and Exchange Board of India, the stock exchanges, shareholders and creditors of both companies, the Competition Commission of India, the High Court of Bombay and the Ministry of Information and Broadcasting.
If you remember, Dish is the first DTH provider in India, way before India government came up with DD Free Dish. Now there are at least seven DTH operators in the country including Airtel DigitalTV, Reliance Big TV, Sun Direct and Tata Sky.