Categories Technology News

TV18 Broadcast, Hathway, Den Networks Merger to Network18 Called Off

Published by
Shloke Sarkar

Reliance Industries Limited (RIL), which is led by India’s richest personality, Mukesh Ambani, late on Thursday announced that the merger of Den Networks, TV 18 Broadcast and Hathway to Network 18 would be called off. This comes almost a year after the announcement was first made, prompting major shifts and reactions in the world of networking.

The key cable distribution company that is owned by RIL, Den Networks, on Wednesday said that it had decided to go against proceeding with the scheme of arrangements in which it had to merge into Network18 alongside its sister companies.

In a statement to the stock exchanges, Den Networks said that after considering that more than a year had passed away from the time of consideration of this scheme, the company had decided to not proceed further with the arrangement that was stated within the planned scheme.

This development, which will have major implications, comes shortly after an offer for sale (OFS) was launched by RIL to pare its stakes in Hathway as well as Den. The subsidiaries of RIL were in search of offloading 19.1% within Hathway and 11.63% within Den for a price of Rs 853 crore and Rs 259 crore, respectively.

Hathway’s OFS Partially Subscribed, While Den’s OFS Fully Subscribed

Hathway’s OFS was partially subscribed whilst Den’s was fully subscribed. Promoter holding within Den prior to this OFS was at 86.5%, whilst within Hathway, it stood at 94%. The floor prices for Den and Hathway share sales were rumoured at Rs 48.5 and Rs 25.3, respectively.

For those of you unaware, in the last month, the share prices of both companies have fallen significantly, with Den having seen a 9% decline, whilst Hathway was subject to a decline of 15%. In other news, TV18 Broadcast shares fell by 6.5%, and Network 18 saw a rise of share prices by 1.8%.

Under the proposed scheme, the shareholders of TV18 would be provided with 92 shares of Network18 for every 100 shares held by them. In comparison, Hathway and Den shareholders would get 78 and 191 shares of Network18 for every 100 shares held.

The key focus of this merger was to allow Network18 to scale up during a time when consolidation was fast-growing within the sector, with the company being able to see a strategic partner if required.

As of March 31, the total debt by Network18 stood at Rs 2,413 crore, with net sales for the period at Rs 4,705 crore, seeing a drop of 12% in comparison to last year.

Shloke Sarkar

Shloke is your go-to guy when it comes to consumer tech. Specializing in In-Depth pieces, he's a newbie to the Telecom industry. His hobbies consist of Formula One and Gaming.

Published by
Shloke Sarkar

Recent Posts

Asus ROG Phone 5 Review: The Perfect Device for Gamers

Asus launched the ROG Phone 5 in multiple variants in India. There is a vanilla…

May 10, 2021 8:33 am

BSNL Bharat Fibre Broadband Plans to Look Out for in May 2021

Last year in October, Bharat Sanchar Nigam Limited (BSNL) launched the ‘Bharat Fibre’ broadband plans…

May 10, 2021 7:00 am

IPv4 Shouldn’t Exhaust Growth of Telecom Service Providers: Adrian Taylor

As rural broadband initiatives help bridge the digital divide, communications service providers have a wealth…

May 9, 2021 9:38 pm

5G Will Help Both Consumers and Enterprises of India: Vivek Kalra

There is a multitude of use-cases of 5G that will be discovered and developed further…

May 9, 2021 8:55 pm

Embracing and Deploying Open Networks: The Key to Taming Digital Disruption in 2021

The 2011 volcanic eruptions in Iceland led to a complete shutdown of travel across Europe…

May 9, 2021 6:16 pm

Vodafone Idea, Airtel and Jio Prepaid Plans That Offer Minimal Daily Data

There is a multitude of unlimited data prepaid plans available in the market today. Private…

May 9, 2021 12:21 pm