MUMBAI: India’s largest direct-to-home (DTH) player, Dish TV and NASDAQ- listed Videocon d2h (Vd2h) have integrated as a single TV Operator on Saturday with 27.6 million net subscribers.
The decision has been taken by Board of Directors of the two companies on Friday.
The company will now be known as ‘Dish TV Videocon Limited’. Dish TV MD Jawahar Goel will head the new company as chairman and managing director.
“Pursuant to the Scheme, Dish TV Videocon shall issue 857.791 million shares as consideration for the Scheme and the Vd2h shareholders shall be allotted 2.021 new shares of Dish TV Videocon for every one share held in Vd2h (subject to certain adjustments as set out in the Scheme),” Dish TV said.
The shareholders of Dish TV will buy 55.4% of Dish TV Videocon while another 44.6% shares will be owned by Vd2h shareholders.
The company has received revenue of Rs. 5,915.8 crore and EBITDA of Rs. 1,826.2 crore for the fiscal year that ended on March 31, 2016.
Goel said, “We are pleased to announce this combination at a time when the cable & satellite Industry in India is rapidly progressing on the path to digitisation.”
Saurabh Dhoot, Executive Chairman of Vd2h said, “Today we are very excited about this strategic combination to create a solid platform with decisive and proven leadership at the front would lead Dish TV Videocon to create value for all stakeholders, our customers, employees, and our shareholders.”
The reports revealed that the shareholders of Vd2h, ADRs will get their shares in the form of GDRs.