InvestorQ : What is the role that Yes Bank is playing in Dish TV, part of the Zee group?
prachi Patwardhan made post

What is the role that Yes Bank is playing in Dish TV, part of the Zee group?

Answer
image
sara Kunju answered.
2 months ago
Follow

You would be aware that Yes Bank is now the largest shareholder in Dish TV with an overall holding of 25.63%. Yes Bank has been looking to remove Jawar *** Goel from the board of Dish TV and appoint another person in his place. This was after Yes Bank invoked the pledged shares of Dish TV and became the largest shareholder. They are currently objecting to the Rs.1,000 crore rights issue proposed by Dish TV as it would dilute equity.

Earlier, under Rana Kapoor, Yes Bank had lent Rs.3,000 crore to the Essel Group promoters, and the promoters had subsequently defaulted on these dues. Jawahar Goel is the younger brother of Subhash Chandra and his holdings had been pledged to save Zee from defaulting to mutual funds. According to Yes Bank, the current board of Dish TV was not upholding corporate governance standards required and expected of the board.

Like in the objections raised by Invesco and OFI Global China in the case of Zee Entertainment, Yes Bank was also of the view that the erstwhile promoter group was punching beyond its weight on the board despite having just 6% stake. Despite objections from Yes Bank, Dish TV went ahead with the rights proposal. Change in directors of Dish TV requires prior approval of the Information and Broadcasting ministry.

5 Views