Mumbai, Oct 19 (UNI) Mukesh Ambani-led Reliance Industries Ltd (RIL) has acquired controlling stakes in two of India’s leading cable TV and broadband companies- DEN Networks and Hathway Cable, as part of its plan to launch JioGigaFiber in 50 million homes and as a result, Reliance will pump in Rs 5,230 crore, to take control of the two companies.
RIL has picked up 66 per cent stake in DEN Network for Rs 2,290 crore, which includes primary investment of Rs 2,045 crore through a preferential issue and secondary purchase of Rs 245 crore from the existing promoters, the company said in a filing with the BSE.
The company has also made primary investment of Rs 2,940 crore through a preferential issue of 51.3 per cent stake in Hathway Cable and Datacom.
The company will also make open offers in DEN and Hathway as well as GTPL Hathway, a company jointly controlled by Hathway, with 37.3 per cent stake and Hathway Bhawani Cabletel and Datacomm, a subsidiary of Hathway.
DEN board has approved the allotment of 28,14,48,000 equity shares of face value Rs 10 each at an issue price of Rs 72.66 per equity share on preferential basis to RIL subsidiries Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings, and Jio Television Distribution Holdings.
The existing promoters Sameer Manchanda, Lucid Systems and Verve Engineering have entered into a Share Purchase Agreement (SPA) for sale of 3,35,85,000 equity shares of the company at a per share price of Rs 72.66 to Jio Futuristic Digital Holdings.
In connection with the proposed preferential allotment, the parties have executed a SSA and SHA between the company, the promoter group comprising Akshay Rajan Raheja, Viren Rajan Raheja, Hathway Investments, Spur Cable and Datacom and Jio Content Distribution, Jio Internet Distribution and Jio Cable and Broadband Holdings.
Both DEN and Hathway will hold extra ordinary general meeting on November 14, to get the transaction approved from the shareholders, a statement said here.