Mukesh Ambani’s Reliance Industries made it official that it is entering a strategic investment partnership with Den Networks Limited and Hathway Cable and Datacom Limited, which will be a ‘win-win’ outcome for customers, local cable operators, content producers, and the companies.
All you need to know about the RIL-Hathway-Den strategic partnership:
- RIL’s strategic investment in and partnership with Den, Hathway Cable and Datacom Limited will accelerate JioGigaFiber rollout to 50 million homes across 1,100 cities.
- RIL will make the 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.
- The Mukesh Ambani conglomerate will also make the 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).
- Hathaway will issue 90.8 crore shares to Reliance Jio at Rs 32.35 per share
- RIL also plans to make open offers in DEN and Hathway subsidiaries.
- Reliance and Jio aim to strengthen 27,000 LCOs that are aligned with DEN and Hathway.
- RIL is being advised by JM Financial Limited, Citigroup Global Markets, Khaitan & Co, Cyril Amarchand Mangaldas, AZB Partners and EY LLP for the deal.
Source- The Financial Express