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, the company said.
Mukesh Ambani’s Reliance Industries on Wednesday 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.
RIL announced the partnership with the two companies alongside its second-quarter earnings report for FY19. RIL’s announcement came a few days after the conglomerate refused to comment on the development and called the news of its plan to acquire Hathway “media speculation and rumours”.
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, the company said.
- 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.
Our investments in DEN and Hathway create a win-win-win outcome for the LCOs, customers, content producers and the eco-system.
– Mukesh Ambani, Chairman and MD, RIL
- 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.
RIL had recently announced a five-year content syndication deal between its video streaming platform JioTV and Star India, which enabled Jio users to watch live sports via Hotstar easily. Reliance Jio, on the other hand, collaborated with largest lender DBI in August to provide next-generation experience with an exclusive digital-banking partnership by integrating SBI YONO with MyJio.