India's Dish TV shares surge as chairman set to exit after Yes Bank tussle

Dish TV India

01/09/2022 09:46

By Sethuraman N R
    BENGALURU, Sept 1 (Reuters) - Dish TV shares  DSTV.NS 
surged up to 20% on Thursday after the broadcast satellite
service provider said Chairman Jawahar Lal Goel would not seek a
reappointment, signalling a win for top shareholder Yes Bank
 YESB.NS  in its push for a board overhaul.
    The company on Tuesday said Goel would not opt for a
re-appointment on its board and independent director Bhagwan Das
Narang would vacate office after his term expired. (https://bityl.co/E8dB)
    Yes Bank, which holds an about 25% stake in Dish TV, has
been pushing for a board reconstitution, including the removal
of Goel, Narang and other members, citing corporate governance
issues and alleging that the board was "purportedly acting at
the behest of certain minority shareholders".
    In early August, Dish agreed to add a couple of Yes Bank's
nominees to its board and on Aug. 30 further considered one more
nominee from the private lender. (https://bit.ly/3R8TPba)
    "Shareholders are hoping that this will be a new phase for
Dish TV, with the dispute between promoters and Yes Bank getting
resolved," said Shriram Subramanian, managing director of
InGovern Research Services, a corporate governance advisory
firm.
    "With a new board, the company would be in Yes Bank's
control. If Yes Bank is not interested in running the company,
they should push for a sale of the company to some strategic
buyer."
    Yes Bank did not immediately respond to Reuters' email
seeking comment.
    Last year, business newspaper Mint had reported that Indian
telecom operator Bharti Airtel Ltd  BRTI.NS  was in early talks
for a majority stake in Dish TV.
    In June, Goel resigned as the managing director after
shareholders rejected a proposal for his re-appointment. 
    Dish TV shares, which were down 35% this year as of last
close, marked their biggest intraday percentage gain since May
2021.

 (Reporting by Nallur Sethuraman in Bengaluru; Editing by
Subhranshu Sahu)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))