RIL announces strategic investment in and partnership with Den Networks Ltd and Hathway Cable and Datacom Ltd
October 17, 2018
Mumbai: Reliance Industries Limited(RIL) today announced strategic investments in Den Networks Ltd and Hathway Cable and Datacom Ltd. The company said it would also make open offers in Den and Hathway as well as for GTPL Hathway Ltd and Hathway Bhawani Cabletel and Datacomm Ltd.
The company said it has made primary investment of Rs. 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs. 245 crore from the existing promoters for a 66% stake in Den Networks Limited (“DEN”) The company also announced primary investment of Rs. 2,940 crore through a preferential issue under SEBI regulations for a 51.3% stake in Hathway Cable and Datacom Limited (“Hathway”).
Th company said it would also make open offers in DEN and Hathway as well as for GTPL hathway Ltd and Hathway Bhawani Cabletel and Datacomm Ltd.
as required under SEBI Takeover Regulations. GTPL Hathway Limited is a company jointly controlled by Hathway with 37.3% stake while Hathway Bhawani Cabletel and Datacomm Limited is a subsidiary of Hathway.
RIL in a statement said, ‘Reliance is privileged to partner with the Rajan Raheja Group, one of the most respected business houses in India, and Shri Sameer Manchanda, a first generation entrepreneur, who have created strong businesses through their business acumen and perseverance. Reliance has the highest regard for the management teams in the respective companies and will work with them to further strengthen and improve business operations.’
‘These strategic investments are in furtherance of Reliance’s mission of connecting everyone and everything, everywhere – always at the highest quality and the most affordable price and transforming India’s digital landscape. After having taken India to the top position in the mobile broadband space, Reliance is now committed to take India from a global rank of 135th to among the top-3 countries in the world on wireline digital connectivity.’
RIL statement further said, ‘these investments and partnerships will create a win-win outcome for the Local Cable Operators (“LCOs”), Consumers, Content providers and overall eco-system. Local Cable Operators: Over the last 25 years, India has connected about 175 million homes with basic coaxial cable technology. This has been made possible because of the efforts of hundreds of thousands of LCOs, who operate in every neighborhood of our country. However, the LCOs have been steadily losing market share because of increasing competition from alternate technologies like Direct-To-Home (“DTH”). In fact, DTH operators have weaned away over 60 million homes from cable operators who have remained basic TV service providers. With this trend, both the LCO business model and the MSOs are under stress.’
‘Through this transaction, Reliance and Jio will be strengthening the 27,000 LCOs that are aligned with DEN and Hathway to enable them to participate in the digital transformation of
India through (a) access to superior back-end infrastructure; (b) tie-ups with content producers; (c) access to latest business platforms to improve business efficiencies and
deliver customer experience; and (d) investment in digital infrastructure for connecting customers. And the LCOs will continue to do what they do best – provide localized, intimate,
people-friendly and ultra-fast customer services. This will create multiple future opportunities for LCOs as Jio rolls out new services and platforms.’
‘In developed countries, more than 95% of homes having a TV also enjoy a fixed-line broadband Internet connection. And fixed-line connectivity in advanced nations is
increasingly based on fiber optics. Reliance is committed to bringing similar infrastructure and connectivity for every Indian home, working with all participants in the eco-system
including the large and entrepreneurial LCO, content producers and broadcasters.’
RIL statement said, Jio shall bring JioGigaFiber to more than 50 million homes across 1,100 Indian cities and towns, in the shortest possible time. JioGigaFiber will offer:
a) Ultra High Definition Entertainment on large screen TVs
b) Multi-Party Video Conferencing from the comfort of everyone’s living room
c) Artificial Intelligence, in the form of voice-activated virtual assistants, who obey every command of the consumerd) Virtual Reality Gaming and Digital Shopping in a magical universe of immersive experiences
e) Smart-Home Solutions, where hundreds of devices like security cameras, home appliances, even lights and switches, can be securely controlled by their owners, from both inside and outside their homes
f) Fixed Mobile Convergence, to offer end-to-end services on an integrated network
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