MUMBAI: Indian direct-to-home (DTH) operator Videocon d2h has put its proposed Rs 700-crore (Rs 7 billion) domestic initial public offering (IPO) in abeyance as it is first focusing on listing on NASDAQ in the US by diluting at least 33.5 per cent stake to US-based Silver Eagle Acquisition Corp (SEAC) for no less than $303.7 million.
Videocon d2h’s lead manager has requested Indian market regulator Securities and Exchange Board of India (SEBI) to keep the processing of the offer document in abeyance, which it had filed on 30 September 2014.
“We are looking at first completing our deal transaction with SEAC and listing in the US. This is why we have asked SEBI to keep the processing of the offer documents in abeyance,” Videocon Group chairman Venugopal Dhoot told TelevisionPost.com.
On 31 December 2014, Videocon d2h had signed an agreement to dilute 33.5-38.6 per cent stake to SEAC for an amount ranging from $303.7 million to $375 million. As per the deal, the actual amount of cash to be contributed and the number of Videocon d2h shares represented by American Depositary Shares (ADSs) to be issued by the DTH company will largely depend on the number of public shares which the SEAC’s stockholders elect to redeem in connection with the transaction.
While the deal was announced on 5 January, in a parallel but unrelated development, SEBI had sought some clarifications from the lead manager of the issue.
As per its IPO plan, the company was planning to raise Rs 700 crore (Rs 7 billion) via issue of shares, while it was also considering a pre-IPO placement of up to Rs 50 crore (Rs 500 million).
The company had said that the funds raised through the offer would be utilised for acquisition of set-top boxes, outdoor units, and accessories thereof, repayment/prepayment of certain indebtedness and general corporate purposes.
Read more at: http://www.televisionpost.com/dth/videocon-d2h-puts-india-ipo-in-abeyance-ahead-of-us-listing/ | TelevisionPost.com
Videocon d2h’s lead manager has requested Indian market regulator Securities and Exchange Board of India (SEBI) to keep the processing of the offer document in abeyance, which it had filed on 30 September 2014.
“We are looking at first completing our deal transaction with SEAC and listing in the US. This is why we have asked SEBI to keep the processing of the offer documents in abeyance,” Videocon Group chairman Venugopal Dhoot told TelevisionPost.com.
On 31 December 2014, Videocon d2h had signed an agreement to dilute 33.5-38.6 per cent stake to SEAC for an amount ranging from $303.7 million to $375 million. As per the deal, the actual amount of cash to be contributed and the number of Videocon d2h shares represented by American Depositary Shares (ADSs) to be issued by the DTH company will largely depend on the number of public shares which the SEAC’s stockholders elect to redeem in connection with the transaction.
While the deal was announced on 5 January, in a parallel but unrelated development, SEBI had sought some clarifications from the lead manager of the issue.
As per its IPO plan, the company was planning to raise Rs 700 crore (Rs 7 billion) via issue of shares, while it was also considering a pre-IPO placement of up to Rs 50 crore (Rs 500 million).
The company had said that the funds raised through the offer would be utilised for acquisition of set-top boxes, outdoor units, and accessories thereof, repayment/prepayment of certain indebtedness and general corporate purposes.
Read more at: http://www.televisionpost.com/dth/videocon-d2h-puts-india-ipo-in-abeyance-ahead-of-us-listing/ | TelevisionPost.com
