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India's Reliance Industries to buy controlling stakes in local cable operators

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India's Reliance Industries to buy controlling stakes in local cable operators

India's Reliance Industries Ltd. will buy controlling stakes in local cable operators DEN Networks Ltd. and Hathway Cable & Datacom Ltd.

The company will acquire a 66% stake in DEN Networks through a primary investment of 20.45 billion Indian rupees via preferential issue, and a secondary purchase of 2.45 billion rupees from existing promoters, according to an Oct. 17 regulatory filing.

Reliance will also purchase a 51.3% stake in Hathway Cable through a primary investment of 29.40 billion rupees via preferential issue.

Under the takeover regulations of the Securities and Exchange Board of India, the company will make open offers for GTPL Hathway Ltd., a company jointly controlled by Hathway with a 37.3% stake, and Hathway Bhawani Cabletel & Datacom Ltd., a subsidiary of Hathway.

Reliance said the transactions will accelerate the rollout of JioGigaFiber, a new fiber-based broadband and fixed-line network, in 50 million homes across 1,100 cities.

Reliance Industries is being advised by JM Financial Ltd., Citigroup Global Markets, Khaitan & Co., Cyril Amarchand Mangaldas, AZB Partners and EY LLP on this transaction.

As of Oct. 17, US$1 was equivalent to 73.40 Indian rupees.