Merger talks between direct to home (DTH) operators Dish TV India and Airtel Digital TV are on hold due to their differences over the deal’s structure, reports stated on Tuesday.
According to a Bloomberg report, Dish TV has opted to explore a sale of the business for cash instead of an all-stock merger. However, Bharti Telemedia’s Bharti Airtel is committed to offer shares. Last year, Chandra sold about 16% stake in his flagship Zee Entertainment Enterprises Ltd.
For some months now, debt-ridden Subhash Chandra has been selling assets to minimise his Essel Group’s debt.
The promoters have sold a 26.7% stake in ZEEL for Rs 8567.18 crore. This has reduced the promoter shareholding in the company to less than 5%.
So far, no statement or confirmation on the information is given by any of the involved companies.
On Tuesday, Dish TV share price rose as much as 6.3% and Bharti Airtel share price climbed as much as 1.2%.
(With input from agencies)