Silver Eagle Acquisition Corp. invests in Videocon d2h

Silver Eagle Acquisition Corp. a company founded by former Metro-Goldwyn-Mayer (MGM) Chairman and Chief Executive Harry Sloan and veteran television Executive Jeff Sagansky, will invest between $300 million to $375 million in Videocon d2h Limited, a pay-television operator in India. As part of the deal, Silver Eagle will own 33.5% to 38.6% of stake in Videocon d2h, a division of the Mumbai-based conglomerate Videocon Group. 

Shares issued by Videocon will be represented by ADSs or American Depository Shares that will be directly distributed to stockholders of Silver Eagle. Through this deal, Videocon d2h will become the only US listed Indian Pay Television operator. As per the deal, the amount of cash to be contributed by Silver Eagle and the number of Videocon D2h shares to be issued will be based on and "will depend, in large part, on the number of public shares which the company's (Silver Eagle) stockholders elect to redeem in connection with the transaction.” Following closure of the deal, Sloan and Sagansky are expected to join the board of directors of Videocon d2h.

Videocon d2h commenced operations in 2009 and it has acquired a subscriber base of 11. 8 million and a market share of 16.5% of India’s Direct to Home market in September last year. It distributes a total of more than 500 digital television channels.