DEN Networks to demerge broadband biz into wholly-owned subsidiary

DEN Networks has received the Board of Directors’ in-principle approval to demerge its broadband business into a wholly-owned subsidiary. The company will also merge 23 of its subsidiaries in the cable business.

The demerger will enabled a focussed attention on the ISP business and achieve structural and operational efficiency, enhanced competitiveness and greater accountability besides accelerating value creation for shareholders.

The separation will allow DEN to focus on the significant growth potential for high speed data and related services in India.

Merger of 23 subsidiaries in the cable business is aimed at strengthening of the single brand leading to a stronger market presence, providing customers with a seamless on-board experience. The structure will result in economies of scale and reduce administrative and regulatory compliances.

Commenting on the development, Pradeep Parameswaran, CEO, DEN Networks, said, “We are focussed on creation of a distinct identity for each of our businesses, and the recent in-principle board approval is a step in this direction. This corporate structure will strengthen the brand while also giving us an opportunity for shareholder value creation.” 

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