Videocon d2h to sell 33.5 per cent stake to US firm Silver Eagle

Videocon d2h, the satellite television operator, has agreed to sell shares worth up to US $375 million to US-based Silver Eagle Acquisition Corp and the proceeds will be used to expand its services.

Silver Eagle will own between 33.5 per cent and 38.6 per cent of Videocon d2h for US $300 million to US $375 million, the two firms said in a statement late on Monday. The deal will result in the listing of the Mumbai-based satellite TV operator in the United States.

Videocon d2h, part of the diversified Videocon Group, plans to list the American depositary shares, which will be issued to Silver Eagle, on the Nasdaq stock exchange, the companies said.

The TV operator had earlier filed papers with capital market regulator Securities and Exchange Board of India (Sebi) for a local listing.

Billionaire Venugopal Dhoot, Chairman of the Videocon Group, that has interests in consumer electronics, telecoms and power, said the deal with Silver Eagle would give the satellite TV arm capital for development and expansion of its services.

Videocon d2h distributes more than 500 digital TV channels and other video and audio services via direct satellite feeds.

(Reuters)