Reliance buys 66% and 51.3% stake in DEN and Hathway respectively

Reliance Industries has announced strategic investment in Den Networks Limited and Hathway Cable and Datacom Limited.

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

RIL would also make open offers in DEN and Hathway as well as for the following companies as required under SEBI Takeover Regulations: GTPL Hathway Limited, a company jointly controlled by Hathway with 37.3% stake and Hathway Bhawani Cabletel and Datacomm Limited, a subsidiary of Hathway.

These investments and partnerships will create a win-win outcome for the Local Cable Operators (LCOs), Consumers, Content providers and overall eco-system.

Through this transaction, Reliance and Jio will be strengthening the 27,000 LCOs that are aligned with DEN and Hathway to enable them to participate in the digital transformation of India through access to superior back-end infrastructure; tie-ups with content producers; access to latest business platforms to improve business efficiencies and deliver customer experience; and investment in digital infrastructure for connecting customers.

The LCOs will continue to do what they do best – provide localized, intimate, people-friendly and ultra-fast customer services. This will create multiple future opportunities for LCOs as Jio rolls out new services and platforms.

Jio has already started work on connecting 50 million homes across 1,100 cities. It will work together with Hathway and DEN and all the LCOs to offer a quick and affordable upgrade to a world-class lineup of JioGigaFiber and Jio Smart-Home Solutions to the 24 million existing cable connected homes of these companies across 750 cities. This will accelerate Jio’s commitment to connect 50 million homes with JioGigaFiber in the shortest possible time.

Mukesh D. Ambani, Chairman & Managing Director, RIL commented, “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 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,” added Ambani.

 

Be the first to comment

Leave a Reply