Reliance acquires controlling stake in DEN, Hathway
Reliance Industries Ltd (RIL). has acquired a controlling stake in two broadband companies - DEN Networks and Hathway Cable and Datacom. The Mukesh Ambani led company is expected to invest Rs 5230 crore to take control of the two companies. This investment is in line with their expansion plans for JioGigaFiber to reach 50 million homes. RIL has picked up 66% stake in DEN Network for Rs 2290 crore. It has also made a primary investment of Rs. 2,940 crore through a preferential issue 51.3% stake in Hathway Cable and Datacom.
Both DEN and Hathway will hold a general meeting on 14 November to get the transaction approved from the shareholders. In a statement, a company spokesperson stated: “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.”