Anil Ambani group firm Reliance Communications (RCom) on Thursday announced acquisition of Digicable, the country's largest cable TV service provider, in an all-stock deal.
The board of RCom approved the proposal for the acquisition in a meeting held on Thursday, the company said in a statement, but did not disclose the value of the deal.
The fresh acquisition of the company comes within days of its announcement to merge its telecom tower business with GTL infrastructure in a Rs. 50,000-crore deal.
The new entity named “Reliance DigiCom” will integrate RCom's DTH, IPTV and Retail broadband operations, with Digicable. The deal would create Asia's largest and the world's fifth largest entity offering full-suite of Digital TV, ultra high-speed broadband and voice services.
Commenting on the acquisition, RCom Chairman Anil Ambani said the Digital TV and broadband space was poised for similar explosive growth in the years ahead.
“With this game changing move, we hope to lead the next revolution in digital home entertainment in India, by offering a world-class TV experience and ultra high speed broadband capability to a billion people.”
Established in August 2007, Digicable is one of the largest Cable TV service providers in the country. The company is promoted by Jagjit Singh Kohli along with Yogesh Shah.