Share price of Hathway Cable and DEN Network gained up to 7 percent intraday Tuesday on news Reliance Industries is likely to buy controlling stake in both the companies.
Reliance Industries (RIL) is likely to announce acquisition of Hathway Cable and Den Network on October 17, CNBC-TV18 reported quoting sources.
RIL is likely to buy stake via fresh equity issuance, which is likely to trigger an open offer for both companies, it added.
The deal will help boost Reliance Jio's GigaFiber services as it expands its subscriber base. This deal is going to add premium customers for Jio improving their ARPU.
Shares of GTPL Hathway locked at 20 percent upper circuit. There were pending buy orders of 18,011 shares, with no sellers available.
A meeting of the board of directors of Hathway Cable and Den Networks is scheduled on October 17 to consider and approve proposal for raising of funds by issuance of equity shares through one or more methods including further public issue/ADR/GDR/qualified institutional placement /preferential issue subject to such regulatory and statutory approvals.
Hathway Cable was quoting at Rs 29.85, up 3.11 percent and Den Networks was quoting at Rs 76.30, up 0.86 percent.
GTPL Hathway was quoting at Rs 97.95, up Rs 16.3, while Reliance Industries was quoting at Rs 1,147.25, up 0.65 percent on the BSE.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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