Dish TV, the DTH arm of Zee Group, has stated that it intends to proceed with its merger with rival Videocon D2h, after an assessment of the potential impact of separation actions towards D2h by banks.
stated that it could submit additional files to the Registrar of Companies regarding the merger.
“Based on the analysis of the above circumstances by the system consultants, the company shall take the necessary steps to complete the plan. In light of the above, we would like to inform you that the company now intends to take additional steps to implement the said merger “.
A month ago, it was reported that Government Financial Corporation of India has taken Videocon to the Nationwide Corporations Regulatory Tribunal (NCLT) for defaulting on a mortgage of Rs 3,900 crore. This was confirmed by a press release from Dish TV that it was reconsidering the merger deal, resulting in Dish TV stock falling by as much as 8%.
Videocon, which is currently in power and strong shopper segments, owes more than Rs 29,000 crore to various banks. It, along with various debtors, was given a December 13 deadline to restructure its debt, otherwise the Central Financial Corporation of India has asked the banks to proceed with the insolvency proceedings.
Insolvency proceedings against group companies that have a stake in the DTH arm can undoubtedly delay and alter the best outcome of the Dish TV-D2h merger.
A merger is envisaged within the type of non-cash transaction that would involve the issuance of shares of the merged entity to holders of Videocon d2h shares. In response to the current scheme, Dish TV shareholders will find that you own approximately 55% of the combined entity, while the remainder will go to Videocon D2h shareholders, along with the trustee.
However, if the Indian banks come to attach the property of the trustee group, you may undoubtedly find yourself with a permit within the new company.
However, as Dish TV mentioned, the two are moving forward with the merger.
“Accordingly, the companies involved in the above intend to submit the relevant electronic notifications/types to the Registrar of Companies.. such filing date shall be the effective date of the said scheme,” Dish TV stated.
The company has not specified the type of filings that are likely to be made at the Registrar of Companies portal. The files are expected to address issues arising from separation actions towards some of the Videocon group entities.
The designation of two administrators in the D2h panel was also provided.
“With a view to seamless integration of the Banned Videocon D2H Companies in and with Dish TV India Restricted and to synchronize the operations of two companies to derive benefits and objectives of the scheme, the Company is nominating two officials specifically Mr. Amitabh Kumar and Mr. Raj Kumar Gupta as Member of the Board Videocon D2H Restricted Management,” it was reported.
Amitabh Kumar has more than 30 years of experience in media and telecom and Raj Kumar and added that Gupta has more than 35 years of experience in the field of cash and accounting.