Reliance Industries is challenging the DTH and telecom service providers by acquiring stakes in Hathway and Den to boost its JioGigaFiber
Reliance has planned to invest over Rs 5,200 crores to acquire controlling stakes in Hathway and Den Networks, two of the largest cable and internet service providers in India. It is eyeing around 66 per cent 51.3 per cent holdings in Den Networks and Hathway respectively. As per a statement, the conglomerate will subscribe to preferential shares and acquire stakes in both the firms.
JioGigaFiber
The statement said that the local cable operators, customers and content producers would be benefitted by the deal. By bringing them under the Reliance wing, the company has planned to boost JioGigaFiber, which is a fibre broadband network targeting homes and businesses across 1,100 cities. It also aims to cater to a larger audience through its smart home solutions. Reliance’s new broadband network is considered to pose as a challenge to other telecom providers in the country as it has come up with a whole package of routers and set-top boxes for television
Deal benefit
Reliance and Jio will gain around 27,000 local cable operators that are directly associated with Den and Hathway. Moreover, the14.4 million cable and about 800,000 broadband connections owned by the two companies also will come under the Reliance Industries’ wing.
SEBI norms
The statement by Reliance Industries said that it would be offering stakes to the existing shareholders of both the companies to meet SEBI’s takeover norm, i.e. any entity whose shareholding in a listed company crosses 25 per cent has to offer to acquire another 26 per cent from public shareholders.
