LOS ANGELES, April 1, 2015 /PRNewswire/ -- With the
Indian economy among the fastest growing worldwide and the
government headed by Prime Minister Narendra Modi encouraging foreign investment,
Videocon d2h Limited ("Videocon d2h"), the fastest growing
direct-to-home (DTH) Pay-TV provider in India, completed its initial listing on the
NASDAQ Global Select Market. The listing was completed through
a business combination transaction with Silver Eagle Acquisition
Corp., founded by Harry Sloan and
Jeff Sagansky, pursuant to which
Silver Eagle contributed approximately $273.3 million to Videocon d2h in exchange for
equity shares of Videocon d2h represented by American Depositary
Shares ("ADSs") which were distributed to Silver Eagle's
stockholders. Public trading of the Videocon d2h ADSs on NASDAQ
under the ticker "VDTH" commenced at the opening of trading today,
April 1, 2015.
As of the opening of trading today, the approximately 37.75
million Videocon d2h ADSs issued to Silver Eagle stockholders were
valued at approximately $453 million
based on the opening price of $12.00
per ADS on NASDAQ today.
Silver Eagle's capital infusion in Videocon d2h represents one
of the largest platform investment deals in Indian media by U.S.
investors.
As a result of the transaction, media investors now have the
unique opportunity to participate early in one of most vibrant
Pay-TV markets in the world. The Indian economy is creating new
Pay-TV households throughout India, and Videocon d2h has led the industry
in active new subscriber growth for the last four years.
Mumbai-based Videocon d2h
distributes over 500 digital television channels and other video
and audio services to subscribers via direct satellite feeds.
With a strong consumer brand and a national footprint, Videocon d2h
is the first satellite TV service in India to roll out the 4K format and is the
only Pay-TV operator which operates its own service centers.
Videocon d2h commenced DTH operations in July 2009 and has since grown to a gross
subscriber base of 13 million and a 20% DTH market share.
Silver Eagle's management team has significant operating and
deal-making experience in the global Pay-TV/channels sector.
Sloan is the former CEO of MGM Studios and during his tenure, he
operated the MGM channel in India
as well as MGM themed channels in several other markets around the
world. In addition, Sloan was the Founder, Chairman and CEO
of SBS Broadcasting, which had Europe's second largest broadcast footprint
including substantial assets in high-growth emerging markets.
Jeff Sagansky, as Co-President of
Sony Pictures Entertainment, was responsible for the international
build-out of Sony Channels, including Sony channels in India and the AXN channels in Asia, as well as channels in many markets
around the world.
Both Sloan and Sagansky are expected to join the board of
directors of Videocon d2h.
Sloan said: "U.S. investor interest in the transaction has been
strong as it affords U.S. investors the opportunity to participate
early in the U.S. listing of Videocon d2h, which is the fastest
growing DTH Pay-TV operator in India, the fastest growing pay TV market in
the world. Beyond this very significant organic growth, we
will be exploring numerous possibilities for the company to expand
as a force in India's developing
media business."
Sagansky added: "Until now, most of the investments in
Indian media have focused on content. But the powerful
Videocon d2h platform can participate in sector growth in multiple
ways including subscriber growth, advertising and channel creation.
We'd like to congratulate Saurabh
Dhoot and his talented team at Videocon d2h for all of their
accomplishments which have been achieved in a very short period of
time."
Saurabh Dhoot, Executive Director
of Videocon d2h, commented: "This transaction and NASDAQ
listing is a testament to what my team has been able
accomplish. The digitalization mandate in India will represent a catalyst for growth in
the DTH sector in our country. With Videocon d2h's industry
leading technology, differentiated programming and dedicated call
centers which deliver exceptional customer service, our platform is
well positioned for future growth. We are very pleased to be
partners with Harry and Jeff and benefit from their decades of
experience in media platforms and content."
Information Concerning Forward-Looking Statements
This
press release includes "forward looking statements" within the
meaning of the "safe harbor" provisions of the United Stated
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"anticipate", "believe", "expect", "estimate", "plan", "outlook",
and "project" and other similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. Such forward looking statements with respect to
the expected performance, strategies, prospects and other aspects
of the business of Videocon d2h are based on current expectations
that are subject to risks and uncertainties. A number of factors
could cause actual results or outcomes to differ materially from
those indicated by such forward looking statements. These factors
include, but are not limited to: the risk that the transaction
disrupts current plans and operations; he ability to recognize the
anticipated benefits of the transaction, which may be affected by,
among other things, competition, the ability of Videocon d2h to
grow and manage growth profitably, effectively direct proceeds
received in the transaction, maintain relationships with suppliers
and obtain adequate supply of products and retain its key
employees; changes in applicable laws or regulations; the
possibility that Videocon d2h may be adversely affected by other
economic, business, and/or competitive factors; and ) other risks
and uncertainties indicated from time to time in filings by
Videocon d2h with the SEC, including those under "Risk Factors"
therein. Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made,
and Videocon 2dh undertakes no obligation to update or revise
the forward-looking statements, whether as a result of new
information, future events or otherwise.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/videocon-d2h-limited-indias-fastest-growing-direct-to-home-pay-tv-provider-completes-initial-listing-on-nasdaq-300059463.html
SOURCE Videocon d2h Limited