I&B ministry approves merger of Dish TV and Videocon d2h

New Delhi: Direct-to-home (DTH) operator Dish TV India Ltd on Friday stated that the corporate has obtained the ultimate approval from the federal government for closing its merger with Videocon d2h, the DTH arm of Videocon Industries Ltd.

In a letter dated 15 December, the data and broadcasting (I&B) ministry permitted the request for the completion of merger between the 2 corporations, Zee group-owned Dish TV stated in an announcement.

The brand new entity will known as Dish TV Videocon Restricted. The mixed entity will serve greater than 29 million subscribers (as per the mixed share on 30 September 2017).

“This paves the way in which for the creation of the most important listed media firm in India, considering the final reported income and EBITDA numbers of the 2 DTH gamers on a pro-forma foundation,” the corporate stated in an announcement.

Presently, there are six non-public DTH companies — Dish TV India Ltd, Reliance Digital Ltd, Tata Sky Ltd, Videocon d2h Ltd, Solar Direct TV Pvt. Ltd and Bharti Telemedia Ltd. Along with these, state broadcaster Doordarshan additionally runs a DTH platform for free-to-air channels known as DD Free Dish.

Dish TV is presently the market chief with a 24% share (as of June 2017), adopted by Tata Sky with a 23% market share. Videocon d2h has a 21% market share, in line with a report launched by the Telecom Regulatory Authority of India.

“Collectively, Dish TV and Videocon d2h are going to put in writing historical past as we embark on this journey of delighting our ‘29 million and rising’ buyer base. It’s an thrilling method forward as we get this chance to leverage the person strengths of the 2 organisations,” stated Anil Dua, group chief govt officer at Dish TV India, within the assertion.

For the 12 months ended March 2017, the full income of Dish TV and Videocon d2h (at a proforma degree) stood at Rs6,086 crore. For planning the post-merger integration, Dish TV has engaged three consulting companies— Aon, Deloitte and PwC— to undertake venture administration in a bid to execute and guarantee integration of the core capabilities, processes and expertise infrastructure.

“It has been an extended journey for the reason that announcement of the settlement between the 2 corporations a 12 months again. We wish to thank the ministry of knowledge and broadcasting, the Nationwide Firm Legislation Tribunal (NCLT), the Competitors Fee of India (CCI), the Securities and Alternate Board of India (SEBI), the inventory exchanges and all different stakeholders for exhibiting their belief in us, ” stated Jawahar Goel, chairman and managing director at Dish TV India.

Dish TV and Videocon d2h had introduced a merger in November 2016 and had initiated the consolidation course of within the DTH market. Not too long ago, RCom bought off its DTH arm to New Delhi-based Patel Applied sciences and Veecon Media Restricted .

Earlier this month, Bharti Airtel additionally determined to promote 20% stake in its DTH arm to personal fairness agency Warburg Pincus for $350 million as the corporate seeks to chop debt.

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