Videocon d2h is expected to merge with Dish TV hence creating India’s largest DTH operators with their deals & sales. The Both companies’ Directors on Friday approved a scheme of agreement for the merging of Videocon d2h into Dish TV and the carrying out of ultimate agreements in relation to such combination. The new entity called Dish TV Videocon which brings together two powerhouses DTH brands of the cable & satellite companies in India will provide us with a gateway to strap up growth opportunities in an ultra competitive media environment.
The entity will be led by Jawahar Lal Goel as the chairman & managing director, joining the strength of operating and senior management teams whilst offering additional career growth opportunities for employees of the two companies. The Videocon d2h principals will have the right to nominate two directors on the new company Board, one of whom shall be the vice chairman and the other will be a deputy managing director.
The entity will have 27.6 million out of a total of 175 million direct-home subscribers in India highlighting noteworthy room for growth. The stock deal expected to see Videocon d2h shareholders getting 2.021 new shares of merging company for every share they held in Videocon d2h. This would result in Dish TV shareholders to be in possession of 55.4% of Dish TV Videocon and V-d2h shareholders owning the rest. The new entity sales in FY16 were Rs 5,920 crore and EBITDA2 of Rs. 18,262 million on pro-forma basis more than Zee Entertainment, which has sales of Rs 5,850 crore.
The entity is expected to provide better synergies and growth opportunities and enable Dish TV Videocon to provide distinguished and superior service to all its customers from end to end deeper after-sales, distribution and technology potentials, and also become a more effectual partner for media providers in India. The proposed merger is expected to close in the second half of 2017.