Dish TV, Asia Pacific's largest direct-to-home (DTH) company, has now become the world's second-largest DTH operator post Videocon D2h's merger with itself. US-based DirecTV is currently the world's largest DTH player.
The company, which is part of the Essel Group, said on Thursday that it has completed the merger of Videocon D2h into and with Dish TV India Ltd. The merger got effective on March 22, 2018, post completion of all the steps outlined in the scheme of arrangement for amalgamation.
Jawahar Goel, chairman and managing director, Dish TV India Ltd, said that the two companies have become one entity now. "This amalgamation positions the new entity for exceptional future growth and profitability and puts on us the responsibility to lead the DTH industry in India to the next level," said Goel.
The merger paves way for the creation of the largest listed media company in India taking into consideration the last reported full-year revenue and earnings before interest, taxes, depreciation and amortisation (Ebitda) numbers of the two DTH players on a pro-forma basis.
Dish TV and Videocon D2h reported separate revenue and Ebitda numbers which at a pro-forma level added up to Rs 6,086.2 crore and Rs 1,990.9 crore for the last fiscal.
Besides, talking into account the subscriber base of Dish TV (16.1 million) and Videocon D2h (13.4 million), the merged entity is now the world's second largest DTH operator with 29.5 million subscribers. Both brands will continue to be offered to new subscribers in the market post completion of this merger.
Taking further steps for effecting the scheme of arrangement for amalgamation of Videocon D2h Ltd into and with Dish TV India Ltd, the companies (Videocon D2h Ltd and Dish TV India Ltd), filed the copy of the order dated July 27, 2017, passed by the National Company Law Tribunal (NCLT) along with the approved scheme in Form INC-28 with the Registrar of Companies, Mumbai, Maharashtra, Dish TV said in a statement.
A meeting of the Board of directors of the company is scheduled to be held on Monday, March 26, 2018, to inter alia consider and initiate necessary incidental actions in relation to the scheme of arrangement for amalgamation of Videocon D2h into and with Dish TV.
The two companies had entered into definitive agreements in November 2016 for the amalgamation of Videocon D2h into and with Dish TV through a scheme of arrangement amongst Dish TV, Videocon D2h and their respective shareholders and creditors. The proposed transaction had been notified to the Competition Commission of India (CCI) for its approval and CCI had given its approval for the proposed transaction vide its letter dated May 4, 2017.
On May 12, 2017, in a meeting convened by the NCLT, the equity shareholders of the company had also approved the scheme. Subsequently, the Mumbai Bench of the NCLT, at a hearing held on July 27, 2017, had approved the scheme under the provisions of Sections 230-232 and other applicable provisions of the Companies Act, 2013. The appointed date for the scheme was therein fixed as October 1, 2017.
BIGGER FOOTPRINT
- The merger paves way for the creation of the largest listed media company in India
- The merged entity is now the world's second largest DTH operator with 29.5 million subscribers
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