In order to create a new entity, two entities like Videocon Group and Essel Group come together. This new entity is Dish TV Videocon Ltd. These two companies solely handle a department of DTH like Videocon d2h and Dish TV.
In this merged entity Videocon have a share of 44.6% and Essel group have 55.4% of stake.
"The Board of Directors of Dish TV and Videocon d2h Ltd today approved a scheme of arrangement for the amalgamation of Vd2h into Dish TV and the execution of definitive agreements in relation to such amalgamation," said a joint statement issued by both the DTH operators.
This new merged entity is the leading DTH operator with the revenue of Rs.5915.8 crores in the year ended March 31, 2016.
Dish TV CMD Jawahar L Goel said: "This transaction, that brings together two powerhouse brands of the cable and satellite industry in India, will provide us with a gateway to harness growth opportunities in an ultra-competitive multi player environment".
Videocon d2h Executive Chairman Saurabh Dhoot said: "Today we are very excited about this strategic combination to create a solid platform with decisive and proven leadership at the front..."
This would lead Dish TV Videocon to create value for all stakeholders, customers, employees and shareholders, he added.
According to the statement, the Essel Group firm would have an upper hand in Dish TV Videocon. "At the close of the proposed transaction, the current promoters of Dish TV shall continue as promoters of Dish TV Videocon," the statement said.
It further added: "The Dish TV principals are also in discussion with the Vd2h principals to purchase some of the Vd2h principals' shares in Dish TV Videocon post the amalgamation, details of which are likely to be finalised soon".
Congratulations to the new company hopefully you achieve your targets.
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