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Reliance Industries to buy controlling stake in Hathway Cable and DEN networks

The transactions are subject to customary regulatory and other approvals.

Reliance Industries to buy controlling stake in Hathway Cable and DEN networks

New Delhi: Reliance Industries Limited (RIL) has announced strategic investment in and partnership with Den Networks Limited and Hathway Cable and Datacom Limited

RIL announced 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 percent stake in Den Networks Limited and primary investment of Rs 2,940 crore through a preferential issue under SEBI regulations for a 51.3 percent stake in Hathway Cable and Datacom Limited.

RIL through subsidiaries has given "open offer of Rs 2.46 per equity share aggregating to total consideration of Rs 51.81 lakh, payable in cash" to Hathway Bhawani Cabletel and Datacom. For Den Networks shareholders, RIL has issued offer of Rs 72.66 per equity share for acquisition of around 12 crore shares for total consideration of around Rs 887.78 crore payable in cash.

“These strategic investments are in furtherance of Reliance’s mission of connecting everyone and everything, everywhere – always at the highest quality and the most affordable price and transforming India’s digital landscape. After having taken India to the top position in the mobile broadband space, Reliance is now committed to take India from a global rank of 135th to among the top-3 countries in the world on wireline digital connectivity,” RIL said in a statement.

The transactions are subject to customary regulatory and other approvals. RIL is being advised by JM Financial Limited, Citigroup Global Markets, Khaitan & Co, Cyril Amarchand Mangaldas, AZB Partners and EY LLP on this transaction.

Mukesh Ambani, Chairman and MD, Reliance Industries Limited said, “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,”

“We look forward to welcoming other MSOs and LCOs to be part of this partnership. 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,” he added.