US-based Silver Eagle Acquisition Corp will acquire up to 38.6 per cent stake in direct to home distribution firm Videocon d2h for around $375 million (about Rs2,130 crore). As per an agreement signed between the two parties, shares valued at $300-375 million will be acquired by Silver Eagle, representing 33.5 per cent-38.6 per cent of Videocon d2h, Silver Eagle Acquisition said in a statement.
In exchange for cash, the US-based firm said, it “will receive new equity shares of Videocon d2h initially valued at no less than $303.7 million representing no less than 33.5 per cent of the equity capital of Videocon d2h”.
The shares issued by Videocon will be represented by American Depository Shares (ADSs) which will be distributed directly to Silver Eagle’s stockholders, it said, adding the deal would make Videocon d2h “the only US-listed Indian Pay-TV Operator”. Videocon d2h intends to apply to list the ADSs on the NASDAQ, the statement said.
Silver Eagle Acquisition Corp founder Jeff Sagansky said: “Videocon’s DTH business is in what we believe to be the fastest growing segment of the media industry in India in part because of the government’s ongoing mandatory digitisation plan in addition to millions of Indian homes subscribing to pay TV for the first time.”