The merger between Asia Pacific’s largest direct-to-home (DTH) company, Dish TV and Videocon d2h moved ahead, as a press release by Dish TV states that merger with Videocon d2h is on track and it has appointed two directors on the board of the Videocon group firm for the seamless integration of the businesses. The company said that “it now intends to take further steps for effecting the said merger”. Previously, on January 11th the company said in a regulatory filing, “It has come to our knowledge that certain entities belonging to the Videocon group, including the promoters of Videocon d2h Ltd, have become subject to insolvency and/or enforcement proceedings by lenders. In light of the foregoing, the company is evaluating if there is any impact of the same on its rights and obligations under the definitive agreements and consequential effects on the transactions contemplated thereunder.” With the merger on track and progressing well, we explore three key takeaways regarding the Dish TV- Videocon d2h combine.

Merger would create largest listed media firm in India

In a letter dated 15 December 2017, after the information and broadcasting (I&B) ministry approved the request for the completion of merger between the two companies, Zee group-owned Dish TV said, “This paves the way for the creation of the largest listed media company in India, taking into consideration the last reported revenue and Ebitda numbers of the two DTH players on a pro-forma basis.” Post merger, Dish TV shareholders will own 55.4% in the media behemoth, to be named Dish TV Videocon, while Videocon d2h shareholders will hold the remaining 44.6% in the company. The merger will lead to an entity with 29 million subscribers, combined revenue of Rs 6,086 crore, according to fiscal year 2017 data.

Director appointed for integration of businesses

“Further, for the purpose of seamless integration of the businesses of Videocon D2H Ltd into and with Dish TV India Limited and for synchronizing the operations of two companies to derive the benefits and objectives of the Scheme, the Company is nominating two directors namely Amitabh Kumar and Raj Kumar Gupta on the Board of Videocon D2H Limited,” Dish TV said in a statement.

The deal may close soon

The deal is reportedly headed towards its closure, and could end by February end, Times of India reported citing unidentified sources. “The original merger deal is mostly intact as both Dish and Videocon thrashed out some differences over valuation, which had cropped into the last leg of the deal-making,” the newspaper reported sources as saying.