Reliance Industries Limited in a move to become the largest player in the broadband as well as the cable TV and direct-to-home market announced that they will buy majority stakes in Den Networks Ltd and Hathway Cable and Datacom Ltd for Rs. 5,230 crores.
The acquisition will provide Reliance access to around 24 million existing cable connected homes of these companies across 750 cities. RIL announced the acquisition of 66 per cent stake in Den Networks for Rs. 2,290 crores and 51.3 per cent in Hathway Cable for Rs. 2,940 crores.
RIL Chairman and Managing Director Mukesh Ambani said, “We are glad to join hands with Rajan Raheja and Sameer Manchanda, two of the pioneers in the MSO industry. Our investments in DEN and Hathway create a win-win-win outcome for the LCOs, customers, content producers and the ecosystem.”
RIL also released a statement saying that the company will make “primary investment of Rs. 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs 245 crore from the existing promoters for a 66 per cent stake in Den Networks Limited”.
Reliance said it will work together with Hathway and DEN and all the LCOs to offer a “quick and affordable upgrade” to Jio GigaFiber and Jio Smart-Home Solutions to the 24 million existing cable connected homes of these companies.
According to the latest data of the Telecom Regulatory Authority of India, there were little over 18 million fixed-line broadband connections in the country in July, with BSNL leading the chart.