Shares of two cable TV operators rose by 6.87 percent to 7.79 percent on BSE after media reports suggested that Reliance Industries is in talks to acquire multiple-system operator DEN Networks.
Den Networks was up 7.79 percent at Rs 94.80. Hathway Cable & Datacom was up 6.87 percent at Rs 31.90.
According to media reports, Mukesh Ambani-owned Reliance Industries (RIL) is said to be in talks to acquire Sameer Manchanda promoted multi-system operator (MSO), DEN Networks. The deal is reportedly likely to go through and the valuation DEN is looking at is between Rs 2000 crore and Rs 2200 crore. A possible acquisition of DEN Networks will give RIL a direct entry into 13 million households, including over 10.5 million digital subscribers, reports added.
On a consolidated basis, Den Networks reported net loss of Rs 10.11 crore in Q1 June 2017 as against net loss of Rs 45.51 crore in Q1 June 2016. Net sales rose 16.81 percent to Rs 314.11 crore in Q1 June 2017 over Q1 June 2016.
DEN Networks provides visual entertainment to its customers through cable TV, over-the-top (OTT) entertainment, tele-commerce and broadband services. DEN has a leading presence in Delhi, Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, West Bengal, Jharkhand, Bihar, Madhya Pradesh and Uttarakhand and have a strong foothold in the strategic & economically important Hindi Speaking Markets (HSM).
The news report had a rub off effect on another MSO, Hathway Cable & Datacom. Hathway Cable reported net profit of Rs 27.16 crore in Q1 June 2017 as against net loss of Rs 53.20 crore in Q1 June 2016. Net sales declined 57.18 percent to Rs 128.90 crore in Q1 June 2017 over Q1 June 2016.
Hathway Cable & Datacom's cable operations straddle across key Indian geographies and offers cable television services across 140 cities and towns and high-speed cable broadband services across 21 cities. – Business Standard