In what will be a first of its kind merger in the DTH sector in India, two leading DTH operators are all set to merge their operations to form a single largest DTH operator. The new entity which will be named Dish Tv Videocon will have a strong subscriber base of 28 Million.
The Board of Directors of Dish TV and Videocon d2h Limited on Friday approved a scheme of arrangement for the amalgamation of Vd2h into Dish TV and the execution of definitive agreements in relation to such amalgamation as reported by IndianTelevision.
Dish TV Videocon will be led by Jawahar Lal Goel as the chairman and managing director, combining the strength of senior and operating management teams while offering further career growth opportunities for employees of the two merging companies. The Vd2h principals shall have the right to nominate two directors on the Dish TV Videocon Board, one of whom shall be the vice chairman and the other a deputy managing director.
The proposed transaction is expected to create a leading cable and satellite distribution platform in India. Dish TV Videocon would serve 27.6 million net subscribers in India, as of September 30, 2016, on a pro-forma basis, out of a total of 175 million TV households in India highlighting significant room for growth. The combined entity would have revenue of Rs. 59,158 million and EBITDA2 of Rs. 18,262 million on a pro-forma basis for the fiscal year ended 31 March 2016 positioning it as a leading media company in India.
Videocon will bring to the table its strong partnerships with set top box equipment manufacturers while Dish TV will sweeten the deals with its strong tie ups with content providers making it the deadliest combination. Dish TV Videocon will continue to operate services under the 3 distinct brand identities of Dish TV, Zing and Videocon D2H.
The proposed transaction remains subject to approvals, including from the 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. The proposed transaction is expected to close in the second half of 2017.