Videocon-Dish TV merger could get affected by insolvency case towards Videocon Industries

Mumbai: Direct-to-home (DTH) operator Dish TV India Ltd on Thursday pointed to the continuing insolvency proceedings towards Videocon group within the context of the delay in its deliberate merger with Videocon d2h.

Dish TV and Videocon d2h had introduced a merger in November 2016.

Earlier, the corporate had stated it expects the transaction to shut by 27 December. In a 22 December submitting, the corporate instructed exchanges that the mandatory filings across the deal closure could be delayed additional, with out citing any cause for the delay.

In its newest inventory alternate submitting on Thursday, Dish TV stated, “It has come to our information that sure entities belonging to the Videocon group, together with the promoters of Videocon d2h Ltd, have turn into topic to insolvency and/or enforcement proceedings by lenders. In mild of the foregoing, the corporate is evaluating if there may be any impression of the identical on its rights and obligations below the definitive agreements and consequential results on the transactions contemplated thereunder.”

Dish TV added that it has requested advisers to the transaction to guage the place and advise the corporate with their findings inside 60 days.

Lenders have referred Videocon Industries to the Nationwide Firm Legislation Tribunal for decision below the Insolvency and Chapter Code. The petition is but to be admitted by the court docket.

The proceedings come at a time when the deal had reached its closing stage.

In a letter dated 15 December, the knowledge and broadcasting (I&B) ministry authorised the request for the completion of merger between the 2 corporations, Zee group-owned Dish TV stated in a press release to inventory exchanges final month.

“This paves the way in which for the creation of the most important listed media firm in India, bearing in mind the final reported income and Ebitda numbers of the 2 DTH gamers on a pro-forma foundation,” the corporate had stated within the assertion.

As of 30 September, the 2 had a mixed subscriber base of 29 million.

The Dish TV and Videocon d2h merger announcement initiated a part of consolidation within the DTH market. Just lately, Reliance Communications Ltd offered its DTH arm to New Delhi-based Patel Applied sciences and Veecon Media Ltd.

In December, Bharti Airtel offered a 20% stake in its DTH arm to non-public fairness agency Warburg Pincus for $350 million as the corporate sought to chop debt.

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