Reuters | | Posted by Sharangee Dutta, Hindustan Times, New Delhi
Indian telecom operator Bharti Airtel Ltd is in early talks for a majority stake in broadcast satellite service provider Dish TV India Ltd , financial daily Mint reported on Thursday, citing people familiar with the matter.
Airtel is looking to buy 5.93% stake from Dish TV’s promoter group and 25.63% stake owned by Yes Bank Ltd, the report said. The lender is the largest shareholder, according to Refinitiv data.
The carrier has offered 20 rupees per share for the 5.93% of Dish TV owned by the promoter group, the report said, citing an unnamed company executive. The amount represents a 14% premium to Dish TV’s closing price on Wednesday.
Once the promoters and Yes Bank accept Airtel’s offer, the carrier will offer to buy the remaining shares from other investors until it owns 51% stake, the report said.
Airtel declined to comment, while Dish TV said in a regulatory filing that it was not aware of the transaction.
According to a Mint report, Airtel executives have held talks with Dish TV parent Essel Group’s founder Subhash Chandra after accounting firm EY submitted a due diligence report to Airtel on October 25.
Shares in Dish TV rose 4.8% and were locked at their upper circuit of 18.40 rupees.
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