A Merger Of 2 Dth Giants:Dish TV With Airtel Digital TV
Bharti Airtel, Dish TV and Warburg Pincus have reached agreement over merger, working upon modalities.
Sunil Bharti Mittal’s direct-to-home arm Airtel Digital TV, private equity firm Warburg Pincus and Dish TVNSE 0.21 % have reached an agreement for merger and a formal announcement is expected in 4-6 weeks, two people with direct knowledge of the development told ET.
Together, Airtel Digital TV merger Dish TV will create the world’s largest TV distribution company with about 39 million subscribers and over 61% share of India’s DTH market.
In the July month when the talks about the Airtel Digital TV and Dish TV merger moved ahead, the Warburg-Singtel duo were offering the share price of Rs 35 per share. At this price, the buyers were looking towards a 57.52% stake in Dish TV. At the proposed share price, Dish TV would have received Rs 3,707 crore, but Dish TV had remarked that it was looking for a much higher price of Rs 45 per share. This would have netted the Essen Group Owned DTH company Rs 4,766 crore. In the meantime, the shares of Dish TV India have been falling, and the market has been seeing big corrections in the prices. If the merger goes through then together, Airtel Digital TV and Dish TV will be able to fend off Reliance Jio and its pursuit of conquering the DTH and broadband sector.
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