Subhash Chandra moves to get family’s stake in Dish TV back from JC Flowers

Subhash Chandra is in talks with JC Flowers Asset Reconstruction Co (ARC) to buy back his family’s shares in Dish TV for Rs 1,500 crore, Mint reported on Friday. With JC Flowers ARC’s 24.19 percent stake in the company, Chandra’s total holding in the satellite TV operator would rise to 28.2 percent, if the deal goes ahead.

Among the things Chandra has moved to win back are shares of Filesadmin.co Learn and three properties including a Rs 2.8 crore bungalow in central Delhi. However, it is unclear how Chandra will raise the Rs 1,500 crore since he still has to pay several Essel Group creditors.

“Chandra has contacted JC Flowers to reach a settlement. JC Flowers is looking into a comprehensive settlement involving the entire portfolio,” a person with knowledge of the matter was quoted as saying in the filing. Mint a report.

At the current share price, JC Flowers ARC stake in Dish TV is around Rs 860 crore.

It is also unclear whether Chandra will make an open-ended offer to buy an additional 26 percent stake in the company. Under current rules, if an entity’s ownership in a company exceeds 25 percent, they must make an open offer for the other 26 percent.

In 2016, Chandra borrowed Rs 5,000 crores from YES Bank against the shares of Dish TV and some real estate properties. After he was unable to service the debt, part of the pledge was transferred to JC Flowers ARC. YES Bank owns 9.99 percent stake in ARC.

This comes just a month after the Securities and Exchange Board of India (SEBI) banned Chandra Wazi CEO Punit Goenka from holding any management positions in the company. It alleged that Chandra and Goenka were actively involved in transferring the company’s funds to other listed group entities and companies related to the founding shareholders.

The duo approached the Securities Court of Appeal (SAT) but it refused to invalidate the regulator’s directive, saying it found no illegality or irrationality in SEBI’s order and saw no point in interfering.