By A Correspondent

Reliance Industries announced a consolidation of its media and distribution businesses spread across multiple entities into Network18.

Under the Scheme of Arrangement, TV18 Broadcast, Hathway Cable & Datacom

and Den Networks will merge into Network18 Media & Investments. This is with effect from February 1, 2020. The broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly owned subsidiaries of Network18. Reliance Industries’ holding in Network18 will reduce from 75% to around 64% upon implementation of the Scheme. The Scheme of Arrangement is subject to all necessary approvals.

Given this, according to a press release issued Network18

• Will be an integrated media and distribution company with a revenue of ~Rs. 8,000 cr,

• Will scale-up as one of the largest listed players in the sector

• Will be net-debt free at consolidated level, providing a solid base for growth as well as improved shareholder returns

• Will benefit from a balanced mix of cyclical and annuity revenues to unlock growth while ensuring stability.

• Will create eco-system for growth opportunities in digital, broadcast media, cable and broadband.

The consolidation of cable businesses of Den and Hathway in one entity will leverage the combined strength of the around 27,000 LCO partners who act as the touchpoints to about 15 mn households in India; delivering localized, people-friendly and ultra-fast customer services.

The combined Broadband entity will serve ~1 mn wireline broadband subscribers across the country.