Reliance Industries Partners With Den Network and Hathway to Accelerate Jio GigaFiber Rollout

As it rumoured in the last few weeks, Reliance Industries Limited, the parent company of Reliance Jio Infocomm has officially announced its strategic investment in and partnership with Den Networks Limited and Hathway Cable and Datacom Limited. RIL made this move so that it can accelerate the rollout of Jio GigaFiber. For the unaware, Reliance Jio launched its high-speed broadband services in the country back in July and it’s currently offering Jio GigaFiber services on an invite-only basis. Jio wants to grab 50 million users in the country across 1,100 cities. Den Networks and Hathway has a strong foothold in various cities across the country and this partnership will help Jio to rack the operations. These transactions are subject to customary regulatory and other approvals.

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RIL-Den Network and Hathway: Partnership Details

Reliance Industries also revealed the transaction details today. According to the information available, RIL made a 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 Networks Limited. Moving onto Hathway deal, RIL made a primary investment of Rs 2,090 crore through a preferential issue under SEBI regulations for a 51.3% stake in Hathway Cable and Datacom Limited.

Furthermore, it’s also said that RIL would make open offers in DEN and Hathway as well as for the following companies as required under SEBI Takeover Regulations: GTPL Hathway Limited, a company jointly controlled by Hathway with 37.3% stake and Hathway Bhawani Cabletel and Datacomm Limited, a subsidiary of Hathway.

As part of this transaction, Jio will be strengthening the 27,000 Local Cable Operators (LCOs) that are aligned with DEN and Hathway to enable them to participate in the digital transformation of India through access to superior back-end infrastructure, tie-ups with content producers, access to latest business platforms to improve business efficiencies and deliver customer experience and investment in digital infrastructure for connecting customers.