ADAG plans to hive off DTH business
Anil Dhirubhai Ambani Group Firm Reliance Communication is negotiating a cashless deal with cable television firm Digicable to set up a $600 million entity.business Updated: Jun 30, 2010 20:54 IST
Anil Dhirubhai Ambani Group Firm Reliance Communications (RCom) is negotiating a cashless deal with cable television firm Digicable to set up a $600 million ( about Rs 2760 crore) entity.
RCom will hive off its DTH and Internet protocol television businesses into a separate entity, which will then be merged with multiple system operator Digicable Network (India) Pvt. Ltd, sources familiar with the development said.
RCom will own a majority 60 per cent stake in the merged entity.
Jagjit Singh Kohli, MD and CEO of Digicable did not respond to phone calls or text messages sent by HT. An ADAG spokesperson also refused to comment.
Private equity fund Ashmore, Kohli and Yogesh Shah, joint managing director of Digicable will hold the remaining stake, sources said.
The merger will give Reliance Big TV, the DTH arm of RCom, access to about 6 million subscriber base of Digicable.
Falling technology and entry costs have intensified competition in television distribution space.
Bharti Airtel, Videocon, Sun TV are among the new entrants that have entered the space.
First Published: Jun 30, 2010 20:52 IST