RCom in deal to acquire Digicable
01-07-2010
Integrates its DTH, IPTV and retail broadband operations with Digicable
Anil Ambani group firm Reliance Communications will acquire Digicable, the country's largest cable TV service provider, in an all-stock deal believed to be worth about USD 1 billion.
The board of RCOM approved the proposal for the acquisition, the company said in a statement, without disclosing the value of the deal.
The new entity, named 'Reliance DigiCom', will integrate RCOM's DTH, IPTV and retail broadband operations with Digicable.
Sources, however, said that the deal would create an entity valued at an estimated USD 1 billion (over Rs 4,500 crore), and the Anil Ambani Group would hold about 60 per cent stake in it. The remaining stake could be held by Digicable and its current promoters.
The acquisition comes within days of RCOM announcing the merger of its telecom tower business, Reliance Infratel, with GTL Infrastructure in a Rs 50,000-crore deal.
Anil Ambani group firm Reliance Communications will acquire Digicable, the country's largest cable TV service provider, in an all-stock deal believed to be worth about USD 1 billion.
The board of RCOM approved the proposal for the acquisition, the company said in a statement, without disclosing the value of the deal.
The new entity, named 'Reliance DigiCom', will integrate RCOM's DTH, IPTV and retail broadband operations with Digicable.
Sources, however, said that the deal would create an entity valued at an estimated USD 1 billion (over Rs 4,500 crore), and the Anil Ambani Group would hold about 60 per cent stake in it. The remaining stake could be held by Digicable and its current promoters.
The acquisition comes within days of RCOM announcing the merger of its telecom tower business, Reliance Infratel, with GTL Infrastructure in a Rs 50,000-crore deal.
