Videocon gains on talk SEAC to buy stake in DTH arm

Nasdaq-listed Silver Eagle Acquisition Corp (SEAC) plans to invest $300 million for a minority stake in its direct-to-home arm Videocon d2h

Shares of Videocon Industries on reports that the Nasdaq-listed Silver Eagle Acquisition Corp (SEAC) deciding to invest $300 million for a minority stake in its direct-to-home arm Videocon d2h, valuing it at a whopping $1.2 billion.

As part of the agreement, the Indian direct-to-home TV service provider will list on Nasdaq. In exchange for the investment by SEAC, Videocon d2h will issue new stocks in the form of American depository shares, according to a Business Standard report.

Videocon d2h will be the first Indian DTH company to be listed on the Nasdaq and joins the club of other top Indian companies that are listed on the US exchanges, the report added.

Videocon d2h distributes about 500 digital television channels and other video and audio services to subscribers via direct satellite feeds.

The stock opened at Rs 167 and touched a high of Rs 169. At 12:30PM, over 390,000 shares were traded on both the stock exchanges.