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Den Networks to buy 51% stake in Cable TV Distributor VBS Digital to grow in Uttar Pradesh

DEN Networks has gone into a concurrence with VBS Digital for obtaining 51 for each penny stake at a thought of Rs 2.64 crore payable in all cash deal. This securing will reinforce DEN Network’s new presence and reach in the territory of Uttar Pradesh.

VBS Distribution Network Private Limited is into cable distribution business in Uttar Pradesh. It has posted enormous revenue growth of 400 percent on a year on year basis in FY17. DEN Networks is occupied with distribution of Television channels through analog and digital cable distribution network, and arrangement of broadband administration. Amid H1FY18, DEN Networks has derived 93 per cent revenue from Cable distribution network and 7 per cent from Broadband connections. The company has continued consistently its negative growth numbers and outlook in its operating level and bottomline since FY15.

Mukesh Ambani owned Reliance Industries is said to be in converses to acquire Sameer Manchanda promoted multi-system operator (MSO), DEN Networks.

“The arrangement is destined to experience and the valuation DEN is taking a gander at is between Rs 2,000 to 2,200 crore,” one of the people said. MSO is the industry term for a cable company.

RIL, which has propelled 4G benefits in the nation under Reliance Jio mark, has been taking a shot at the dispatch of home broadband and satellite TV administrations for a long while now. It additionally has plans to offer quad-play administrations ­ broadband web, wire line communication, satellite TV and remote networking.

Be that as it may, as the market was experiencing a dynamic move under the legislature ordered digitisation program and RIL was focussing more on the dispatch of Jio, the satellite TV designs were put on hold.

A conceivable obtaining of DEN Netwroks will give RIL an immediate section into 13 million families, including more than 10.5 million digital customers.

The company has been able to accelerate its subscription collections mainly in Phase 3 and 4 markets. Its cable subscription revenue has seen a jump of 24 per cent in Q2FY18 compared to Q2FY17. Under the Broadband model business, company expects the offtakes to be visible from early FY19 as the next phase of roll out to expand wired internet services are in pipeline.

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