In one swift move, Mukesh Ambani’s Reliance Industries has acquired majority interest in India’s two largest cable TV and broadband companies — Hathway Cable & Datacom and DEN Networks — for a total sum of ₹5,230 crore.
Reliance Industries said it will invest ₹2,940 crore in Hathway for 51.3% stake via a preferential issue of shares at a share price of ₹32.35 apiece.
In DEN, RIL will be making a primary investment of ₹2,045 crore through a preferential issue at ₹72.66 per share and a secondary purchase of ₹245 crore from existing promoters Sameer Manchanda and others. The transaction will give RIL 66% stake in the company.
The fresh fundraising will help Hathway and DEN to infuse funds for capital expenditure and increase competitive activity, industry experts said.
RIL said these investments and partnerships will create a win-win outcome for the LCOs, consumers, content providers and overall ecosystem.
The move, as ET first reported, will help in giving a boost to Ambani’s ambitious JioGigaFiber that aims to connect 50 million homes across 1,100 cities.
Reliance Jio Infotech has been facing some resistance from the LCOs across the country. However, with the acquisition of Hathway and DEN, Jio will get control of almost 27,000 LCOs of the two MSOs to work with.
RIL said it will “work together” with Hathway, DEN and the LCOs to offer a “quick and affordable upgrade” to a world-class line-up of JioGigaFiber and Jio Smart-Home Solutions to the 24 million existing cable connected homes of these companies across 750 cities.
Meanwhile, the company announced that its wholly-owned subsidiary, Reliance Industrial Investments and Holdings, has acquired 12.7% stake in US-based SkyTran.
Reliance Industries said it will invest ₹2,940 crore in Hathway for 51.3% stake via a preferential issue of shares at a share price of ₹32.35 apiece.
In DEN, RIL will be making a primary investment of ₹2,045 crore through a preferential issue at ₹72.66 per share and a secondary purchase of ₹245 crore from existing promoters Sameer Manchanda and others. The transaction will give RIL 66% stake in the company.
The fresh fundraising will help Hathway and DEN to infuse funds for capital expenditure and increase competitive activity, industry experts said.
RIL said these investments and partnerships will create a win-win outcome for the LCOs, consumers, content providers and overall ecosystem.
The move, as ET first reported, will help in giving a boost to Ambani’s ambitious JioGigaFiber that aims to connect 50 million homes across 1,100 cities.
Reliance Jio Infotech has been facing some resistance from the LCOs across the country. However, with the acquisition of Hathway and DEN, Jio will get control of almost 27,000 LCOs of the two MSOs to work with.
RIL said it will “work together” with Hathway, DEN and the LCOs to offer a “quick and affordable upgrade” to a world-class line-up of JioGigaFiber and Jio Smart-Home Solutions to the 24 million existing cable connected homes of these companies across 750 cities.
Meanwhile, the company announced that its wholly-owned subsidiary, Reliance Industrial Investments and Holdings, has acquired 12.7% stake in US-based SkyTran.
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