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Dish TV contends YES Bank's reasons to invoke pledged shares; seeks corrigendum

As on the date of the communication, the company was not in default of any payment obligations to YES Bank under the financing facility availed from the lender, says Dish TV

twitter-logoBusinessToday.In | June 1, 2020 | Updated 22:08 IST
Dish TV contends YES Bank's reasons to invoke pledged shares; seeks corrigendum
YES Bank on May 30 acquired over 24 per cent stake in Dish TV India through invocation of pledged shares

A day after YES Bank acquired 24.19 per cent stake in Dish TV India through pledged shares, the direct-to-home (DTH) company on Monday said that disclosure filed by private lender regarding the acquisition contain certain incorrect facts.

Objecting to YES Bank's disclosure statement, Dish TV said, "We would like to mention that your statement, "shares acquired on invocation of pledge subsequent to default/breach of terms of loan to Dish TV India Limited" is an incorrect statement."

Dish TV, which is jointly operated by the Zee Group and the Videocon Group, clarified that as on the date of the communication, the company was not in default of any payment obligations to YES Bank under the financing facility availed from the lender.

The DTH service provider further stated that "no shares have been pledged by the promoters of Dish TV or any other entity for the loans availed by Dish TV from YES Bank Limited. Therefore, there cannot be any question of invocation of any pledged shares in relation to the loan availed by Dish TV from YES Bank."

Dish TV also requested YES Bank to submit a corrigendum or other such document with the stock exchanges to amend the statement made in the disclosure regarding invocation of pledges shares.

Also Read: YES Bank share price gains over 4% on invoking pledged shares of Dish TV

On May 30, YES Bank said it has acquired over 24 per cent stake in Dish TV India on invocation of pledged shares due to default of terms of loans by the DTH service provider and other group firms. The company acquired 44,53,48,990 equity shares of Dish TV India Limited, constituting approximately 24.19 per cent of the post-issue paid-up share capital as at March 31, 2020.

"Shares have been acquired pursuant to invocation of pledge of the shares subsequent to default/breach of terms of credit facilities sanctioned by YES Bank to Essel Business Excellence Services Limited, Essel Corporate Resources Private Limited, Living Entertainment Enterprises Private Limited, Last Mile Online Limited, Pan India Network Infravest Limited, RPW Projects Private Limited, Mumbai WTR Private Limited & Pan India Infraprojects Private Limited," the private lender had said in the exchange filing on Saturday.

Reacting to the news, shares of Dish TV India closed Monday's trade at Rs 4.49 apiece, up 4.91 per cent, on the BSE.

Meanwhile, shares of YES Bank rose over 4 per cent in intraday trade higher on acquisition of stake in Dish TV India. The stock settled 1.3 per cent higher at Rs 27.20 per share.

By Chitranjan Kumar

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