Dish TV and Airtel Digital TV Merger Talks Now Resume One of the persons related to the matter spoke on this issue, “The final scheme of arrangement and other details are being worked on.” Also, according to this person, Warburg Pincus, which had invested in 20% of Bharti Telemedia for $350 million back in 2017, will remain invested in the company even after the merger. Another person aware of the ongoings remarked that following the merger of the companies, Bharti Telemedia could also hold an IPO to be listed on the stock market. He also added that back in September, the companies had almost reached an agreement on the pricing of the shares on which Dish TV was ready to sell its business, but the Supreme Court verdict had halted these talks, thus putting a pause on the merger proceedings. But, now the talks are on again. The Supreme Court decision on the issue of Adjusted Gross Revenue (AGR) had ordered telecom operators to pay upwards of Rs 1.47 lakh crore in total in the name of license fees, spectrum usage charges, interests and other penalties, in which Bharti Airtel also has to pay a large chunk. This decision, which was passed in October, had struck a hurdle in the talks of the merger earlier. Dish TV to Hold On to Some Businesses It is worth noting that right now, Dish TV remains a listed company, and after the merger, it will continue to offer its other services which includes Dish Infra Services (infra support business). Not only this, but the company owns 51% in C&S Medianet, which is a distribution consultancy joint venture in partnership with cable TV service provider Siti Networks. The promoters of the company currently occupy a 55.27% stake in Dish TV. Merged Company to Make Largest DTH Entity When posed with questions from ET, Warburg Pincus did not respond to any queries. Further, Dish TV said that the company would refrain from responding to market speculation. To recall, the first move in the Dish TV and Airtel Digital TV merger was made by Sunil Bharti Mittal, the chairman of Bharti Group which holds Bharti Telemedia, and one of the largest telcos of India. This move was made, after the Mukesh Ambani led telecom operator, Reliance Jio had bought a controlling stake in major cable TV firms like DEN Networks and Hathway. It is crucial to note that when these two companies merge their operations, they will create the largest DTH entity in India with about 62% market share and 40 million DTH subscribers. It would dethrone the current market leader in the DTH industry, Tata Sky.
