Dish TV promoters may sell 58% stake to Bharti arm, Warburg Pincus for about Rs 5,000cr
If the deal goes through, it would be the second biggest merger in the Indian DTH space
July 04, 2019 / 03:27 PM IST
Promoters of Dish TV might sell their 58 percent holding in the company to Bharti Airtel's DTH arm for around Rs 5,000 crore, Business Standard reports.
Airtel Digital TV and private equity firm Warburg Pincus are likely to partner and purchase the Goel family’s stake for Rs 45-50 per share, or between Rs 4,800 crore and Rs 5,300 crore, the report said.
Discussions between Airtel and Dish TV began in March, the report stated. The Goel family had initially quoted Rs 62 per share for the transaction. But the offer price was lowered due to high promoter debt and rising prominence of JioFibre.
If the deal, which is likely to be finalised next month, goes through, it would be the second biggest merger in the Indian direct-to-home (DTH) space. Dish TV will be main brand after the merger.
Moneycontrol could not independently verify the story.
In a statement to the BSE, Dish TV denied knowledge of such a deal.
"The Company is not aware of the alleged transactions mentioned" in the report.
Airtel wants to merge Dish TV with Airtel Digital TV through a share swap after acquiring the former's promoter stake and making an open offer for a 20 percent stake, the report said.
The Jawahar Goel-controlled Dish TV is facing financial hurdles, with the promoters pledging 94.6 percent of their 58 percent stake. Part of the proceeds raised will be used to repay their debt of over Rs 16,000 crore, the report added.
(The copy has been updated with comments from Dish TV)Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.