Silver Eagle Invests in Indian Pay-TV Operator

LOS ANGELES: Silver Eagle Acquisition Corp., which is led by Harry Sloan and Jeff Sagansky, has picked up a stake in Videocon d2h, which will result in the first U.S.-listed Indian pay-TV operator.

Silver Eagle is investing around $300 million to $375 million for approximately 33.5 to 38.6 percent of Videocon d2h. The shares issued by Videocon will be represented by American Depositary Shares (ADSs), which will be distributed directly to Silver Eagle's stockholders.

Videocon d2h is the fastest growing direct-to-home (DTH) broadcast operator in India, as measured by new subscribers. Based in Mumbai, Videocon d2h is a member of the global conglomerate Videocon Group, which has diversified interests in consumer electronics, oil and gas, power, retail and insurance, among others.

Upon completion of the transaction and distribution to the company’s stockholders of the ADSs, Videocon d2h will be a publicly held corporation. Videocon d2h intends to apply to list the ADSs on the NASDAQ Stock Market. Sloan and Sagansky, the company’s chairman and chief executive and president, respectively, are expected to join the board of directors of Videocon d2h at closing.

Sloan commented: “We created Silver Eagle for the purpose of finding a fast-growing media opportunity which is taking full advantage of the digital revolution. With almost 10 million digital subscribers, this well-managed company has passed the inflection point to become a leader in India’s explosive television growth.”
 
Sagansky said: "Videocon's DTH business is in what we believe to be the fastest growing segment of the media industry, in India in part because of the government's ongoing mandatory digitization plan, in addition to millions of Indian homes subscribing to pay TV for the first time. Together, there is an expected 33 million new pay-TV subscribers over the next four years and we are pleased to become part of Videocon d2h’s dynamic growth story.”
 
Venugopal Dhoot, the chairman of the Videocon Group, added: “Our DTH service already offers the highest number of channels in each of our packages, and we were the first company to launch HD channels in India. We anticipate that the transaction with Silver Eagle will not only give us additional capital to continue development of our services, but also unparalleled expertise and experience. We look forward to working closely with Harry and Jeff on expanding our market share and services.”