Dish TV and Videocon D2H to Merge to Form Dish TV Videocon DTH Soon
Videocon D2Hto merge with Dish TV to create a new unit. Videocon D2H and Dish TV synchronize the frequencies and bundle their forces; It will serve 28 million customers combined in India and will form a powerful direct to home TV system and entertainment unit of the country. Videocon D2H Videocon Group Ltd ready to combine with Dish TV of Essel group in an all-share agreement to form a new DTH brand Dish TV Videocon Ltd.
Videocon DTH, will own 44.6% share of the merged company, while the Essel group billionaire Subhash Chandra will own55.4%. "The board of Dish TV and Videocon D2H today signed an agreement to merge Vd2h and Dish TV and final agreements in the course of this merger," according to a joint statement released by both DTH operators. The merged entity would position itself as the first operator DTH in the country. It will have a Rs 5.915.8 crore profit on a pro forma basis for March 31, 2016. According to the plan, shareholders of Dish TV would own 1,066,861 million existing shares or 55.4% of Dish TV Videocon, Vd2h shareholders 857 791 million new shares or 44.6% hold. The transaction is expected to be completed in the second half of 2017, subject to the approval of various stakeholders, such as the Securities and Exchange Board of India (Sebi), the Commission of Indian Competition (ITC), Supreme Court of Mumbai, the Ministry of Information And broadcasting, stock exchange and the shareholders and creditors of the two companies. The merger would provide "synergies and growth opportunities and will enable them to provide a sophisticated and first-class service and become an effective partner for TV content providers in India". "This transaction brings together two brands of cable and satellite industry in India, we are making a gateway to take advantage of growth opportunities in a highly competitive multiplayer environment," said Jawahar L.Goel, executive director, and CEO of Dish TV". According to the statement, the company Essel Group would have an advantage over Dish TV Videocon. "At the completion of the planned transaction, current Dish TV organizers continue to be sponsors of Videocon Dish TV," according to the statement. In addition, he added, "The directors of Dish TV are also in talks with administrators Vd2h to buy some of the share administrators Vd2h on Dish TV Videocon after the merger, the details are likely to be completed soon. After completion of the transaction, Dish TV Videocon will continue to trade on NSE and BSE in India and on the Luxembourg Stock Exchange in the form of global depository certificates (GDR). "Under this plan, Videocon D2H ADR holders will receive their new shares in the form of GDRs, unless they choose to receive and directly hold new promotions," according to the statement. It is intresting to see the effect of this merger of two gaint direct to home satellite TV provider, Dish TV and Videocon D2H on its subscribers and their channels pack including price. So, get ready to welcome a big DTH brand Dish TV Videocon in India.