Reliance spends US$710MN for controlling stakes in Den, Hathway | Major Businesses | Business
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Reliance Industries has acquired controlling stakes in two of India’s largest cable TV companies Den Networks and Hathway Cable & Datacom, as it prepares to launch its nationwide JioGigaFiber broadband service.
Reliance Digital TV logo 30 Oct 2017
India’s largest private sector company by market value is to buy 66% of Den and 51.3% of Hathway at a combined cost of INR5,230 crore (US$710 million).

The Mukesh Abmani-led conglomerate will make a primary investment of IRN 2,045 crore in Den through a preferential issue and a secondary purchase of INR 245 crore from Den’s promoters. It will also invest INR 2,940 crore through a preferential issue of Hathway shares. Reliance will then make open offers for the two multi system operators (MSOs) in line with regulatory procedures.

Reliance will then make open offers for GTPL Hathway Ltd, in which Hathway has a 37.3% stake, and the Hathway subsidiary Hathway Bhawani Cabletel and Datacomm Ltd.

DEN and Hathway will each hold an extra ordinary general meeting on 14 November seeking shareholder approval for the transaction.

Reliance plans to work with Hathway and DEN, along with the local cable operators (LCOs) who partner the two MSOs to offer JioGigaFiber and Jio Smart-Home services to their 24 million cable-connected homes across 750 cities.

“Our investments in DEN and Hathway create a win-win-win outcome for the LCOs, customers, content producers and the eco-system. With local cable operators now as part of the Jio ecosystem, we look forward to bringing Jio’s advanced JioGigaFiber and Smart Home Solutions to more Indian homes, even quicker,” said Mukesh Ambani, chairman, Reliance Industries.

“This will result in growing wireline data connectivity in India and making state-of-the-art, high-speed, affordable internet and digital services accessible to the widest population in the shortest possible time,” added the billionaire businessman.

After taking India to the top ranking country in the mobile broadband space, Reliance said it is now committed to taking it from 135th position to among the world’s top-three countries for wireline digital connectivity.

Some 50 million homes across 1,100 cities are to be served by JioGigaFiber which promises to offer 4K entertainment, fixed mobile convergence, virtual reality gaming and digital shopping, multi-party video conferencing from the living room, artificial intelligence in the form of voice-activated virtual assistants, and a range of other smart features.