Reliance Industries may soon get a controlling stake in Cable TV and broadband service providers Hathway Cable & Datacom, DEN Networks. Sources say that RIL is aiming more than 25 per cent stake in the respective companies which will give it a seat on the board the ability to control their future development. The acquisition will help Reliance in speeding up the launch of Jio Gigafiber.
Stock exchanges have been informed of the board meetings on 17 October of both the companies. Raheja Group owns the Hathway Cable and Sameer Manchanda owns DEN Networks. After the news, shares have seen an increase in the prices as Hathway closed at Rs 28.95 per share and DEN at Rs 75.65, Economic Times reported.
Collectively, DEN and Hathway boast of 72 lakh subscribers across 350 cities, and will be a major boost to Jio. Hathway controls 52 per cent of the cable-broadband market in India, with an outreach to 55 lakh homes.
DEN has a presence in the northern parts of India like Uttar Pradesh and Hathway’s presence is across central and western parts. As of now, the operational charts are ready giving it a structural figure on how they can use the multiple system operators to provide broadband services to the best of their ability.
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