Reliance Industries is ready to ramp up the Cable TV and broadband game in India by acquiring one of the leading network providers
Reliance is in talks to buy a majority stake in one of India’s leading Cable TV and broadband service providers, GTPL Hathway. Earlier, the company had announced that it would invest Rs 2,940 crore in Hathway to acquire a 51.3 per cent stake, which would, in turn, provide a 19 per cent stake in GTPL Hathway as it owned around 37.3 per cent in the service.
The acquisition plan has been reported to benefit Reliance JioGigaFiber that is targeted to connecting around 50 million homes across 1100 cities. It has been reported that Reliance Industries has made an open offer of up to 25.64 per cent of Hathway at a price of Rs 82.65 per share, amounting to about Rs 238.37 crore. However, industry experts have opined that shareholders are sceptical about the offer.
The Cable TV and broadband service provider has around 20,000 local cable operators and a strong 7.6 million subscribers in India. It has a presence mostly in Gujarat and West Bengal apart from the other 11 states across the country. Its latest figures indicate around 290,000 broadband subscribers. It generated a revenue of Rs 1,113.4 crore and a net profit of Rs 61.4 crore in the last fiscal.
Reliance Industries will gain around 20,000 local cable operators that are directly associated with Hathway. Moreover, the acquisition will also bring Hathway’s cable TV and broadband subscribers under the Reliance Industries’ wing.