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YES Bank acquires 24% in Dish TV by invoking share pledges

The invocation was subsequent to default or breach of terms of credit facilities sanctioned by the bank.

, ET Bureau|
Last Updated: May 30, 2020, 05.58 PM IST
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Agencies
Yes-Bank
After the invocation of shares, Dish TV promoters will be left with just over 30% stake in the company.
Mumbai: Private sector lender YES Bank has acquired 24.19% stake in Dish TV, India’s largest direct-to-home (DTH) company in terms of subscribers, by invocation of 44.53 crore pledged shares.

As of March 31, Dish TV promoters owned 54.56% stake in the company, out of which over 93% was pledged with the lenders. YES Bank, sources say, had the biggest exposure. After the invocation of shares, Dish TV promoters will be left with just over 30% stake in the company.

In a filing to exchanges, YES Bank said the invocation was subsequent to default or breach of terms of credit facilities sanctioned by the bank to Essel Business Excellence Services, Essel Corporate Resources, Living Entertainment Enterprises, Last Mile Online, Pan India Network Infravest, RPW Projects, Mumbai WTR and Pan India Infraprojects.

“The shares have been acquired on invocation of pledge of shares and this is a one-time transaction,” Yes Bank said on Friday night.

For the quarter ended December 31, 2019, Dish TV had 23.95 million subscribers with operating revenue at Rs 867.8 crore and operating profit of Rs 505.6 crore. Its net loss for the quarter was at Rs 66.8 crore.

Last year, Dish TV and Airtel were in advanced talks to merge the DTH business of Dish TV with Bharti Telemedia, Airtel’s DTH arm. However, the two parties could not reach an agreement.

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