The deal between cellco Reliance Communications (RCom) and cable operator Digicable is being investigated by the Information and Broadcasting Ministry, according to the Business Standard.
A year ago, it had already been reported that India’s second…
The deal between cellco Reliance Communications (RCom) and cable operator Digicable is being investigated by the Information and Broadcasting Ministry, according to the Business Standard.
A year ago, it had already been reported that India’s second largest mobile operator was looking to secure Digicable in a cashless deal that would combine RCom’s DTH subsidiary Big TV with Digicable.
But under India’s cross-holding rules, cable and DTH companies are banned from holding more than 20% in each other.
According to the deal structure reportedly submitted to the I&B Ministry, private equity firm Ashmore would take a 28% stake in the combined entity, which will be known as Reliance Digicom, while Stellar Holding, which will be controlled by the CEO of Digicable Jagjit Singh Kohli, would own 10%. The rest would be held by RCom.
According to the Business Standard, the deal has already received the green light from the High Court.
The companies could not be reached for comment before the press deadline.
