I&B ministry approves merger of Dish TV and Videocon d2h
New Delhi: Direct-to-home (DTH) operator Dish TV India Ltd on Friday said that the company has received the final approval from the government for closing its merger with Videocon d2h, the DTH arm of Videocon Industries Ltd.
In a letter dated 15 December, 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 in a statement.
The new entity will called Dish TV Videocon Limited. The combined entity will serve more than 29 million subscribers (as per the combined share on 30 September 2017).
“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,” the company said in a statement.
Currently, there are six private DTH firms — Dish TV India Ltd, Reliance Digital Ltd, Tata Sky Ltd, Videocon d2h Ltd, Sun Direct TV Pvt. Ltd and Bharti Telemedia Ltd. In addition to these, state broadcaster Doordarshan also runs a DTH platform for free-to-air channels called DD Free Dish.
Dish TV is currently the market leader with a 24% share (as of June 2017), followed by Tata Sky with a 23% market share. Videocon d2h has a 21% market share, according to a report released by the Telecom Regulatory Authority of India.
“Together, Dish TV and Videocon d2h are going to write history as we embark on this journey of delighting our ‘29 million and growing’ customer base. It is an exciting way ahead as we get this opportunity to leverage the individual strengths of the two organisations,” said Anil Dua, group chief executive officer at Dish TV India, in the statement.
For the year ended March 2017, the total revenue of Dish TV and Videocon d2h (at a proforma level) stood at Rs6,086 crore. For planning the post-merger integration, Dish TV has engaged three consulting firms— Aon, Deloitte and PwC— to undertake project management in a bid to execute and ensure integration of the core functions, processes and technology infrastructure.
“It has been a long journey since the announcement of the agreement between the two companies a year back. We would like to thank the ministry of information and broadcasting, the National Company Law Tribunal (NCLT), the Competition Commission of India (CCI), the Securities and Exchange Board of India (SEBI), the stock exchanges and all other stakeholders for showing their trust in us, ” said Jawahar Goel, chairman and managing director at Dish TV India.
Dish TV and Videocon d2h had announced a merger in November 2016 and had initiated the consolidation process in the DTH market. Recently, RCom sold off its DTH arm to New Delhi-based Patel Technologies and Veecon Media Limited .
Earlier this month, Bharti Airtel also decided to sell 20% stake in its DTH arm to private equity firm Warburg Pincus for $350 million as the company seeks to cut debt.