Videocon D2h, Dish TV India announce merger
The announcement paves way for the creation of one of the largest listed media companies in India
One of Asia Pacific’s largest direct-to-home (DTH) company and part of the Essel Group, Dish TV India announced today its merger with Videocon D2h. A meeting of the Board of Directors of the Company is scheduled to be held on March 26 to inter alia consider and initiate necessary incidental actions in relation to the Scheme of Arrangement for Amalgamation of Videocon D2h Limited into and with Dish TV India Limited.
Jawahar Goel, CMD, Dish TV India, said, “We are extremely pleased to announce that the D-Day is finally here. Today, Videocon D2h Limited and Dish TV India Limited have become one entity. This amalgamation positions the new entity for exceptional future growth and profitability and puts on us the responsibility to lead the DTH industry in India to the next level.”
“It has been a long journey and I would once again like to put on record, through these pages, our appreciation for the Ministry of Information and Broadcasting, the National Company Law Tribunal, the Competition Commission of India, the Securities and Exchange Board of India, the National Stock Exchange of India Limited, BSE Limited, NASDAQ and all other stakeholders for showing their trust in us. I would also like to express our gratitude to the shareholders of both Companies for standing by us through the transaction and believing in the Company,” he added.
The merger paves way for the creation of perhaps the largest listed media company in India taking into consideration the last reported full-year revenue and EBITDA numbers of the two DTH players on a pro-forma basis. Dish TV and Videocon D2h reported separate revenue and EBITDA numbers which at a pro-forma level added up to Rs 60,86.2 crore and Rs 19,90.9 crore for FY17.
The two companies had entered into definitive agreements in November 2016 for amalgamation. The proposed transaction had been notified to the Competition Commission of India (CCI) for its approval and CCI had given its approval for the proposed transaction vide its letter dated May 4, 2017.
On May 12, 2017, in a meeting convened by the National Company Law Tribunal (NCLT), the Equity Shareholders of the Company had also approved the Scheme for Amalgamation of Videocon D2h into and with Dish TV.
Subsequently, the Mumbai Bench of the Hon’ble NCLT, at a hearing held on July 27, 2017, had approved the Scheme under the provisions of Sections 230-232 and other applicable provisions of the Companies Act, 2013. The Appointed date for the Scheme was therein fixed as October 1, 2017.
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