Reliance Industries' open offer to acquire shares of Den Networks and GTPL Hathway through its subsidiaries will start on Friday, according to regulatory filings.
RIL and its subsidiaries have proposed to acquire 2,88,40,891 full paid-up equity shares, representing 25.64 per cent voting share capital of GTPL Hathway for Rs 82.65 per equity share for total consideration of Rs 238.37 crore.
In case of Den Network, RIL and its subsidiaries have announced open offer to acquire 12,21,83,457 fully paid-up equity shares, representing 25.58 per cent of the expanded voting share capital at price of Rs 72.66 per equity share aggregating to total consideration of Rs 887.78 crore, according to the filings.
RIL on October 17 announced that it will buy majority stakes in Den Networks Ltd and Hathway Cable and Datacom Ltd for Rs 5,230 crore, a move aimed at becoming the largest player in the broadband as well as the cable TV and direct-to-home market.
The acquisition gives Reliance access to 24 million existing cable connected homes of these companies across 750 cities, thereby covering around half of its target to connect 50 million homes across 1,100 Indian cities.
According to latest data of the Telecom Regulatory Authority of India, there were little over 18 million fixed line broadband connections in the country in July, with BSNL leading the chart. RIL announced to acquire 66 per cent stake in Den Networks for Rs 2,290 crore and 51.3 per cent in Hathway Cable for Rs 2,940 crore.