DishTV and Bharti Airtel have cancelled a proposed deal due to differences over valuation, according to a report by the Business Standard.
DishTV, promoted by Essel Group, has begun talks with a global financial investor which so far does not have operations in India, for a half of its stake, the report said.
Merging with Dish would have helped Airtel expand its direct-to-home (DTH) services.
The deal might be valued at Rs 2,000 crore, sources told the paper.
Essel Group will use the cash proceeds from a sale to repurchase a 5 percent stake in Zee Entertainment Enterprises (ZEEL) in the next 12 months, the report said.
Moneycontrol could not independently verify the story.
In November 2019, Subhash Chandra’s Essel Group sold 16.5 percent out of its 22.37 percent stake in ZEEL, making them minority shareholders in the company.
As of the end of December 2019, promoters own 4.87 percent of ZEEL’s shares, according to data available on the BSE.
The plan is to raise Essel Group’s stake in ZEEL to 26 percent, the report added.
An Essel Group spokesperson declined to comment when approached by Business Standard.
Separately, ZEEL’s promoters are in talks with a US-based strategic investor, sources told the paper.―Money Control