Reliance Industries Ltd. is combining its media and distribution businesses under its unit Network18 Media & Investments Ltd., the latter's news website News18.com reported, citing a statement.
Broadcaster TV18 Broadcast Ltd. will be housed in Network18, while cable and broadband operators Hathway Cable & Datacom Ltd. and Den Networks Ltd. will become wholly owned subsidiaries of Network18.
In line with the new structure, every 100 shares in TV18 Broadcast, Hathway and Den Networks will be exchanged for 92, 78 and 191 shares in Network18, respectively. Reliance Anil Dhirubhai Ambani Group's stake in Network18 will be reduced to 64% from 75% upon the merger's completion, according to the report.
Indian conglomerate Reliance Industries reportedly said the restructuring is in line with its goal of creating a company that transcends platforms and distribution networks. Network18, TV18 Broadcast, Hathway and Den Networks' boards approved the proposed consolidation.