Promoter stakes in both firms are likely to drop as a result with the acquisition also triggering open offers
Mukesh Ambani's Reliance Group is reportedly set to take controlling stake in Hathway and DEN. According to a report in the Economic Times, Reliance Industries may soon buy controlling stakes in two of India’s largest cable TV and broadband service providers, Hathway Cable & Datacom and DEN Networks. The move would ramp up coverage of its ambitious high-speed broadband network.
Citing sources known of the development, the report said that Reliance would own 25% each in the two companies giving it the ability to control developments and get a seat on the board. Promoter stakes in both firms are likely to drop as a result with the acquisition also triggering open offers, they added.
According to the newspaper, the deal's announcement would happen in another few days. Raheja Group owns Hathway Cable while Sameer Manchanda owns DEN Networks.
“Both Hathway and DEN will issue fresh shares. The fine print of the deal is being worked out,” said a highly placed source. He said RIL will own over 25 per cent . “It will be a significant stake, but less than 50 per cent ,” the source told the publication.
Meanwhile, Reliance Industrial Infrastructure Ltd (RIIL) on Monday posted a 21.6 per cent decline in standalone profit at Rs 2.10 crore for the quarter ended September 30, 2018.
The company had posted standalone profit of Rs 2.68 crore in the corresponding quarter of previous fiscal, RIIL said in a BSE filing. However, the company's total income during the July-September quarter increased to Rs 25.17 crore, over Rs 23.79 crore in the year-ago period.
RIIL continues to provide infrastructure support services namely transportation of petroleum products and water through pipelines, construction machinery on hire, and other support services to Reliance Industries Group, with a substantial portion provided to Reliance Industries Limited.
RIIL presently does not have any expansion plans on the anvil, the company said in a release.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Mukesh Ambani's Reliance to get majority stake in Hathway, DEN: Report")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}