Direct-to-home service provider Videocon d2h will raise $300 million (₹1,900 crore today) by selling a minority stake to Nasdaq-listed Silver Eagle Acquisition Corporation (SEAC) and its shareholders.
“Videocon d2h entered into an agreement with SEAC on December 31, 2014. As part of this agreement, the company will issue new shares in the form of American depositary shares,” a senior official said, requesting anonymity.
The company will also get listed on the Nasdaq Stock Exchange, added the official.
According to sources, Videocon d2h was valued at $1.2 billion and SEAC and its shareholders would invest around $300 million for the minority stake.
As a part of the deal, Harry Sloan and Jeff Sagansky, Chief Executive Officer and President of SEAC, respectively, will join the board of Videocon d2h. Sloan had served as Chairman and CEO of MGM in the past, while Sagansky was part of the management teams of CBS and Sony Pictures.
Based in Mumbai, Videocon d2h is part of the Venugopal Dhoot-led $10-billion Videocon Group, which has interests in diverse areas such as consumer electronics, oil and gas, power, retail and insurance.
The company distributes over 500 digital television channels and other video and audio services to subscribers via direct satellite feeds. It had a subscriber base of 11.8 million and a market share of 16.5 per cent in the Indian DTH segment as of September 30, 2014.
For fiscal 2014 and the six months ended September 30, 2014, Videocon d2h had about 27.7 per cent and 26.1 per cent, respectively, of the incremental market share of the DTH subscriber base in India.