Bharti Airtel, promoters of Dish TV
and private equity firm Warburg Pincus have agreed to merge DTH operations of Airtel and Dish, a move that will create the world’s largest TV distribution company, The Economic Times
reported citing sources.
Warburg Pincus, which picked up 20 per cent stake in Bharti Telemedia for $350 million in December 2017, is expected to remain invested in the company post merger, the report added.
Last week, CARE Ratings downgraded the rating of Dish TV's short-term bank facilities to ‘CARE D’ from ‘CARE A4+’ saying the revision in rating takes into account default in payment of short term loan due on November 28, 2019. In reponse to it, the company on Monday clarified that the default in debt repayment was on account of a temporary cash shortfall due to peak payment commitments to suppliers.
further said it has been drawing on its internal cash accruals to fund its capital expenditure for more than six quarters now. Debt and interest payment obligations falling due after the particular incident of non-service have also been fulfilled on time. While being cautious about its cash expenditures, the company also remains optimistic about improvement in its liquidity situation going forward.
Thus far in the financial year 2019-20 (FY20), shares of Dish TV have cracked 66 per cent as compared to 2 per cent rise in the benchmark Nifty50.