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Dish TV share price jumps 3% on reports of DTH merger with Airtel

Bharti Airtel, promoters of Dish TV and private equity firm Warburg Pincus have agreed to merge DTH operations of Airtel and Dish.

December 11, 2019 / 10:40 AM IST
 
 
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Share price of direct to home television service provider Dish TV jumped over 3 percent intraday on December 11 after media reports indicated that direct-to-home (DTH) operations of the company and Bharti Airtel may merge.

Bharti Airtel, promoters of Dish TV and private equity firm Warburg Pincus have agreed to merge DTH operations of Airtel and Dish, a move that will create the world’s largest TV distribution company, The Economic Times reported.

The three parties have agreed on deal structure, wherein the DTH business of Dish TV India will be hived off and merged in Bharti Telemedia, which houses Airtel Digital TV, they said.

Warburg Pincus, which picked up 20 percent stake in Bharti Telemedia for USD 350 million in December 2017, is expected to remain invested in the company post merger, the report added.

Dish TV will continue to offer non-DTH services including Dish Infra Services (infra support business) and own 51 percent in C&S Medianet, its distribution consultancy joint venture with cable TV service provider Siti Networks, sources said. Company promoters own 55.27 percent stake in Dish TV.

Shares of Dish TV India zoomed 15 percent on December 9 after the company said the default in debt repayment was on account of a temporary cash shortfall due to peak payment commitments to suppliers. The company issued the statement after rating agency Care Ratings downgraded the rating of the company's short-term bank facilities to ‘CARE D’ from ‘CARE A4+’.

The company reported a consolidated net loss of Rs 96.37 crore for the quarter ended on September 30, 2019. The Essel Group firm had reported a net profit of Rs 19.73 crore in the July-September quarter a year ago, Dish TV said in a BSE filing.

At 10:17 hrs Dish TV India was quoting at Rs 13.53, up Rs 0.49, or 3.76 percent. It has touched an intraday high of Rs 14.15 and an intraday low of Rs 13.20.

Moneycontrol News
first published: Dec 11, 2019 10:40 am

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