Yes Bank News - Yes Bank Limited acquired a 24.19% stake in Dish TV India Ltd, a provider of direct home services, by invoking 44.53 equity shares kept as collateral with a private lender for a loan.
This is the fifth instance in the past one year that Yes Bank acquired a majority stake in non-banking businesses, simply due to invocation of the pledge against the shares of a company that had availed loans from the bank and later failed to repay the dues.
On January 15, Yes Bank, by virtue of an invocation of pledged shares, had acquired six million equity shares, constituting about 10.25% of from Sical Logistics Ltd, a promoter group entity of Coffee Day Enterprises Ltd, founded by late VG Siddhartha - Yes Bank News.
Sical Logistics provides dredging and retail supply chain. Sical Connect Ltd failed to obtain a loan obtained from Yes Bank by pledging shares of Sical Logistics.
Yes Bank News - Similarly, on January 14, the lender acquired 127.32 million shares, or 29.97% stake, from Rosa Power Supply Company Ltd, a wholly-owned subsidiary of Reliance Power Ltd.
On November 18, 2019, the bank acquired 0.95 million shares, constituting 20.61% of Tulip Star Hotels Limited, by invoking a pledge. Tulip Star Hotels owned 50% stake in V Hotels Ltd, which in turn operates prime hotel properties in Juhu, Mumbai. This pledge was invoked because Ezeego One Travel and Tours Ltd defaulted in loan repayment.
Last year, on July 26, Yes Bank acquired 32.75 million shares, or 18.55%, of Cox & Kings Ltd, and 34,080 shares, amounting to 30% of Ezeego One Travel & Tours Ltd according to Yes Bank News.
Since the beginning of the year, Dish TV shares have lost 67% of its value, closing at ₹4.28 apiece on Friday.
Dish TV was launched in 2003, with the aim of providing services in rural and regions not serviced by cable television.
In 2016, its Board had agreed to an all-stock merger with Videocon d2h, which was completed in 2018. Dish TV has a market capitalisation of Rs. 2046 crores and a subscriber base of 23.94 million, making it a close rival of Tata Sky, according to the Mint Report.
Dish TV was in the news earlier this year when its deal with Sunil Mittal-led Bharti Airtel Ltd had fallen through. The media said Dish TV promoters were in talks with a global financial investor who has no operations in India to pick up half their stake.
Article Source : LiveMint
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