Anil Ambani group firm Reliance Communications (RCom) will acquire Digicable, the country’s largest cable TV service provider, in an all-stock deal believed to be worth about $1 billion.
The board of RCOM approved the proposal for the acquisition in a meeting held on Thursday, 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 $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 deal was announced after the close of the stock market.
The Digicable deal would create Asia’s largest and the world’s fifth-biggest entity — offering a full suite of digital TV, ultra high-speed broadband and voice services.
Established in August 2007, Digicable is the cou-ntry’s largest cable TV ser-vice provider. The company is promoted by Mr Jagjit Singh Kohli, along with Mr Yogesh Shah. — PTI