Yes Bank has moved a proposal to change the board of Dish TV and control the management. But the key question is why it is depriving the rights of open offer to minority shareholders? Another key question is will bank again be allowed to take exemption from open offer? As per regulations, the control itself triggers open offer but so far bank has only called for change and appoint 7 members in the board. But if the lender is trying to change the management, they should have come up with open offer.

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By opposing the rights issue of Yes Bank, lender is again harming the interest of the company and so the investors. If the Rights Issue had been cleared, the company would have received the required capital for growth and investment in new technologies. But it seems the lender is hell bent in hurting the interest of the shareholders of Dish TV. At a time when other D2H companies are investing and expanding their businesses the actions of Yes Bank seem to be going against. If Rights issue was not blocked, minority shareholders could have got the option to subscribe Dish TV shares at Rs 10/share. Key question is can current management take shelter of good image under the umbrella of State Bank of India and play with public monies and rights of minority shareholders?

Can minority shareholders be put on ransom because Yes Bank sanctioned loans to certain entities other than Dish TV and accepted pledge of the shares. Only after such huge pledge in July 2018 by Yes Bank, share prices of Dish TV fell while operating performance of Dish TV has been good. The company has been performing well, paying off debt, fighting competition without access to new capital which could have come through rights issue.

Yes Bank currently holds 25.63% shares of Dish TV. The shareholding increased to 25.63% shares after invoking pledge of 24.13% shares.