College Retirement Fund Buys Into Dish TV

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US-based College Retirement Equities Fund has picked up 64.64 lakh shares of DTH service provider Dish TV India for around R32 Cr. As per the bulk deal data available with the stock exchanges, College Retirement Equities acquired 64,64,500 shares of Dish TV India at an average price of R49.25 valuing the transaction to R31.83 Cr. However, the seller of the shares could not be ascertained. Incorporated in 2005, Dish TV India Limited is a part of the Essel group and provides direct to home (DTH) services. DTIL has highest transponder capacity in DTH industry in India, bandwidth capacity of 648 MHz with an ability to deliver more than 400 channels & services including 22 audio channels and over 40 HD services. The company has a vast distribution network with 1450+ distributors & around 136,000 dealers that span across 8358+ towns in India as on December 2012. It has a subscriber base of around 14.70 Mn subscribers, as on December 2012. College Retirement Equities Fund - CREF Stock Account is a variable annuity open-ended equity mutual fund launched and managed by TIAA-CREF Investment Management, LLC. It seeks to invest in stocks of companies operating across diversified sectors. The fund primarily invests in stocks of companies across all capitalizations. DTH subscriber base is estimated to grow from 32.4 Mn in 2012 to 63.8 Mn by 2017 and 76.6 Mn by 2020, stated by Media Partners Asia (MPA), an independent provider of information services focusing on media, communications and entertainment industries. As per the report, Dish TV continued to lead with a market share of 27% in terms of gross additions, while Videocon d2h led in terms of incremental adds in 2012. Tata Sky and Airtel Digital TV have 19% and 18% market share, respectively. These four players together accounted for 88% of total gross additions in 2012. Digitization is carried out in four phases. In the first phase - which ended on December 31, 2012 - the four metros switched to set-top boxes (STBs). In the second phase, 38 cities in 15 states moved to STBs by March 31, 2013. In the third phase -the deadline for which is September 30, 2014 - all urban areas of India have to switch to STBs. By December 31, 2014, the entire country will have to switch to STBs. News reports reveal that two players in the DTH business--Reliance Communications and Bharti Airtel - are planning to sell their stake in the DTH business due to tough competition. Anil Ambani-owned Reliance Communications is said to be in talks with South-based Sun Group to sell its DTH business for an estimated R20 $367 Mn. Similarly, there have been reports Bharti Airtel is in talks with Liberty Global and a couple of private equity firms to sell 25% stake of its DTH business. Both are reportedly looking to exit from satellite business due to financial issue source DealCurry.com : College Retirement Fund Buys Into Dish TV
 
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