New Delhi: Dish TV on Thursday said it is evaluating the impact of reported insolvency proceedings initiated against certain entities of the Videocon group on its proposed merger with Videocon d2h.
The proposed merger has already received regulatory approvals from the Ministry of Information and Broadcasting, NCLT and from the Competition Commission of India.
“It has come to our knowledge that certain entities belonging to the Videocon group, including the promoters of Videocon d2h ltd, have become subject to insolvency and /or enforcement proceedings by lenders,” Essel group firm Dish TV said in a BSE filing.
It further added, “In the light of the foregoing, the company is evaluating as to whether there is any impact of the same on its right and obligations under the definitive agreement and consequential effects on the transactions contemplated thereunder.”
According to the reports, several lenders of the debt ridden Videocon group, which have interest in consumer electronics and home appliance and crude oil and natural gas besides others, are gearing up to approach bankruptcy courts to recover their money.
On November 11, 2016, the board of Dish TV and Videocon d2h had approved scheme of arrangement for the amalgamation of Videocon d2h into Dish TV. If Dish TV and Videocon d2h are merged, then the merged entity would have a subscriber base of over 27 million, creating the largest DTH service provider in the industry.
Dish TV has an active subscriber base of 15.5 million, while that of Videocon d2h stands at around 12.2 million.
PTI