Dish TV Challenges Yes Bank Acquisition, Highlights Incorrect Facts

Dish TV said that the Yes Bank disclosure on shares acquired on invocation of pledge is an “incorrect statement”

By June 2nd, 2020 AT 5:09 PM

Dish TV on Monday said that the disclosures filed by Yes Bank with the stock exchanges over the 24.19% acquisition in Dish TV contained “incorrect facts.” The second largest Direct-to-Home (DTH) operator in India in a filing with the stock exchanges said that it has not defaulted on any payment obligation to Yes Bank. Crucially, the DTH operator said that “no shares have been pledged by the Promoters of Dish TV or any other entity for the loans availed by Dish TV from Yes Bank.” Further, Dish TV said that the Yes Bank disclosure on shares acquired on invocation of pledge is an “incorrect statement” as the DTH operator has not pledged the shares.

Dish TV Requests Yes Bank to Issue a Corrigendum

India’s fourth largest private sector bank, Yes Bank on Friday said that it has acquired 24.19% stake in Dish TV following invocation of shares pledged by the DTH operator. In its filing to the stock exchanges, Yes Bank said that it has invoked 44.53 crores of pledged shares due to debt default by Dish TV and other Essel group firms.

Essel Business Excellence Services, Essel Corporate Resources and Living Entertainment Enterprises are some of the Essel group firms that were listed to have defaulted on the credit facilities sanctioned by Yes Bank.

Dish TV on Monday requested Yes Bank to issue a corrigendum to its disclosure issued on Friday.

“Dish TV India Limited (Dish TV) is not in default of any payment obligations to Yes Bank Limited under the financing facility availed from Yes Bank Limited,” the DTH operator said in the filing to the stock exchanges.

Yes Bank Requires Approval from MIB

Additionally, Dish TV highlighted that the Yes Bank requires prior approval from the Ministry of Information and Broadcasting (MIB) as per the guidelines issued by the government of India.

“The DTH guidelines specifically prohibit any change in the Equity structure of the Licensee company without prior approval of the Ministry of Information and Broadcasting, Government of India,” Dish TV said in the filing.

Further, Dish TV requested Yes Bank to obtain permission from the MIB prior to effecting the transfer of shares.

It has to be noted that the promoters of Dish TV held a 54.56% stake in the company as of March 31, 2020 as per the filings with the stock exchanges. While Dish TV said that the promoters have not pledged any stake with Yes Bank, the filings highlight that the promoters have pledged 93.46% of their total stake to the lenders.

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Born in India, Yogesh loves to travel and has lived in multiple countries including New Zealand and Canada. His bylines can be found on various newspapers and blogs throughout the world, including Vancouver Sun, Surrey Now-Leader, Daily Hive , Investing News Network and Rach F1.

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