Indian operator Bharti Airtel has started talks to take a majority stake in Dish TV India, in a deal that would give it control over half of the country’s satellite television business, Mint reported. Airtel executives are in discussion with Dish TV parent Esself Group’s founder Subhash Chandra. Accounting firm EY reportedly submitted a due diligence report to Airtel on 25 October.
Airtel wants to acquire a 5.93 percent stake from Dish TV's promoter group and another of 25.63 percent, owned by Yes Bank, one of Dish TV India’s largest shareholder, according to Refinitiv data.
One source says Airtel has offered INR 20 per share for the 5.93 percent stake. The amount represents a 14 percent premium to Dish TV's closing price on 1 December.
If 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 percent.
Airtel declined to comment. Dish TV said in a regulatory filing that it was not aware of the transaction.
