After more than a year of twists and turns, Dish TV and Videocon d2hare set to formalize a merger to create India's largest direct-to-home (DTH) company valued at around USD 2.4 billion. An announcement could come later this week as both Dish and Videocon target a deal closure before February end, people directly aware of the matter said.
Last month, Dish TV had said it was reviewing the deal and assessing the impact on its rights and obligations after promoters of Videocon d2h became subjected to insolvency proceedings.
The original merger deal is mostly intact as both Dish and Videocon thrashed out some differences over valuation, which had cropped into the last leg of the deal-making, the sources said. The move from some quarters to renegotiate valuation metrics, after the deal had received all regulatory approvals, plunged it into uncertainty.
According to the original plan, Dish TV shareholders will own 55.4 percent in the combined entity, to be named Dish TV Videocon, while Videocon d2h shareholders will hold 44.6 percent in the company. The merger will lead to an entity with 29 million subscribers, combined revenue of Rs 6,086 crore and operating profit of Rs 1,990 crore according to fiscal 2017 data.
The merged entity plans to delist Videocon d2h shares from Nasdaq, and list the combined entity on the London Stock Exchange through a global depository receipt (GDR) offering. When contacted, a Dish TV spokesperson said the company would comment only after the board meeting scheduled on Tuesday. The merged entity will have more than one-third share of Indian DTH market with about 75-80 million subscribers. – TOI