Indian cable television distribution company Den Networks announced that it is raising 2,045 crore rupees ($278.3 million) through a preferential allotment to mobile network operator Reliance Jio Infocomm Limited, a unit of energy to retail company Reliance Industries.
The company will be creating, offering, issuing and allotting in one or more tranches 281.4 million preferential equity shares at an issue price of $0.99 per equity share.
The potential deal will give Reliance Industries access to broadband homes and subscribers and will drive market share gains and help gain wallet share among consumers at top-end.
The primary benefit of this deal would be gaining access to the last mile, and the deal will strengthen the bargaining power of Den Networks and peer Hathway Cable & Datacom with regard to broadcasters.