Dish TV- Videocon D2H merge; country’s largest pay TV operator is born

The company post market hours on Friday, November 11, 2016 informed the exchanges that the board of directors of Dish TV and Nasdaq Videocon d2h have approved a scheme of arrangement for the amalgamation of Videocon D2H into Dish TV to form the leading cable and satellite distribution platform in India.

Following the merger, the merged entity will be renamed as Dish TV Videocon. The terms of the deal state that 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), which would result in Dish TV shareholders owning 1,066.861 million existing shares or 55.4 per cent of Dish TV Videocon, and Vd2h shareholders owning 857.791 million new shares or 44.6 per cent of Dish TV Videocon.

The combined entity would serve in total 2.76 crore subscribers in India.

The proposed transaction is expected to provide better synergies and growth opportunities and will enable Dish TV Videocon to provide differentiated and superior service to all customers through deeper after-sales, distribution and technology capabilities.

Shares of Dish TV closed at Rs 87.65 on NSE, down 5 per cent.