Chandra moves to raise Dish TV stake
MUMBAI, BENGALURU : Media mogul Subhash Chandra is in talks with JC Flowers Asset Reconstruction Co. (ARC) to buy back his family’s shares in Dish TV India Ltd, marking another twist in the two-year-old battle between the minority investor and the promoter for control of India’s third-largest satellite TV operator. Chandra, 72, has also put forward a proposal to buy other assets, including shares in the educational company Zee Learn Ltd and three properties, including a bungalow built over 2.8 acres in central Delhi.
Chandra has proposed to pay JC Flowers ₹1,500 crore to buy these assets, two executives privy to the development said. On Thursday, Dish TV shares ended trading at ₹19.31 a share, giving it a market value of ₹3,555 crore. This implies JC Flowers’ 24.19% stake in the satellite TV operator is worth ₹860 crore.
“Chandra has approached JC Flowers for a settlement. JC Flowers is looking at a comprehensive settlement, which includes the entire portfolio," said the first person aware of the matter. JC Flowers ARC is currently evaluating the offer proposed by Chandra, even as the executive termed the battle for control of Dish TV as a boxing match that has gone on for “too long" and is beginning to hurt minority investors.
However, Chandra’s offer to buy back Dish TV shares could prove to be far from a straightforward transaction on account of legal and regulatory challenges, according to a second executive privy to the development. “The source of how ₹1,500 crore will be raised by him (Chandra) is not clear. This is important because there are many creditors whose dues have still not been cleared by Essel Group.
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