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DEN Networks to offload 55% stake in soccer biz for Rs 43.3 cr
MUMBAI: DEN Networks is selling 55% stake in its loss-making soccer business to Wall Street Investments Corp. for Rs 43.32 crore (Rs 433.2 million).
The company has entered into an agreement with Wall Street Investments to offload 55% stake in DEN Sports, which indirectly owns Indian Super League (ISL) team Delhi Dynamos FC.
TelevisionPost.com was the first to report that DEN Networks is in advanced negotiations to sell 55% stake in its loss-making soccer business to GMS Leadership.
The agreement includes the sale of shares from DEN Networks and preferential allotment by DEN Sports.
Both firms signed a sales agreement on 29 March. Prior to the agreement, DEN was holding 100% stake in DEN Sports, which in turn owns 100% of DEN Soccer.
DEN Soccer is the operating company that owns, controls and manages ISL team Delhi Dynamos.
The cable and broadband company has been looking to dilute stake in its soccer business for some time as part of its drive to focus on its core business.
DEN reported a loss of Rs 46.05 crore (Rs 460.5 million) from its soccer business on a revenue of Rs 8.08 crore (Rs 80.8 million) in FY15.
In the first three quarters of the current fiscal, DEN incurred an operating loss of Rs 34.82 crore on a revenue of Rs 14.72 crore (Rs 147.2 million).