MUMBAI: Dish TV will have one wholly owned subsidiary less as it transfers the non-DTH related businesses into Integrated Subscriber Management Services Ltd (ISMSL).
Agrani Satellite Services Ltd (ASSL), which owns a licence to own, operate and launch a satellite, will merge with ISMSL, a company that deals with data management services.
The merger of one subsidiary with the other was approved by the Dish TV board today.
Agrani had made an investment of Rs 940 million in the last fiscal but has gone slow on its plans to launch a satellite. As reported earlier, the company shelved its earlier plans of acquiring stake in ProtoStar and investing $64 million.
Dish TV believes the restructuring plan will lead to “sustainable improvements” in financial performance and provide a sound starting point for a more efficient and customer-oriented business in the future.
The restructuring of the subsidiary companies will allow Dish TV to deal decisively with its cost to effectively restructure its operations and to narrow its strategic focus on its DTH business in an effective and timely manner.
“These actions are imperative so that the company can build on its core strengths and become the highly focused and financially sound leader in the fiercely competitive DTH industry,” Dish TV said.
Shares of Dish fell by 2.01 per cent on Friday to close at Rs 41.45 on the BSE.
