Thursday, May 24, 2007

Raheja`s, Star to sell 15% in Hathway

The Raheja’s and Star TV are together selling 15 per cent in cable network operator Hathway Cable to private equity firm ChrysCapital. The sale consideration is estimated at around $60 million (around Rs 245 crore), thus valuing the closely-held company at $400 million (around Rs 1,640 crore).

ChrysCapital is buying around 11 per cent from the Raheja’s and another 4 per cent from Star TV, which holds a 26 per cent stake in the company. Star TV had invested $75 million for the stake.

Following ChrysCapital’s entry, Raheja’s stake will be reduced to about 63 per cent, while Star TV’s stake will come down to 22 per cent.Hathway Cable has operations in 13 cities. The other large players in the business are Hindujas’ Incable Net and the Essel group’s Wire and Wireless India Ltd.

Read more in The Business Standard article.

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