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DEN plans to dilute another 10% in ISL franchise
MUMBAI: Cable TV and broadband service provider DEN Networks plans to offload a further 10% stake in its soccer venture, thus bringing down its holding in DEN Sports to just 10%.
The company had sold 80% stake in the Indian Super League (ISL) franchise Delhi Dynamos FC in two tranches of 55% and 25% to Wall Street Investment.
In the first tranche, the company had offloaded 55% for Rs 43.32 crore, while in the second tranche it sold 25% for an undisclosed sum.
DEN intends to hold the remaining 10% for marketing purpose.
DEN has recovered its investments in the venture. The company had invested about Rs 80-85 crore by way of operating expenses. There was no CAPEX as such.
In FY16, DEN had posted a loss of Rs 43 crore before exceptional items from the soccer franchise against a revenue of Rs 15 crore. However, including the exceptional items of Rs 47 crore from stake sale, the company had posted a net profit of Rs 4 crore. In the previous fiscal, the net loss was Rs 48 crore on revenue of Rs 8 crore.
Following the acquisition of the second tranche in Delhi Dynamos, Wall Street Investments had received an in-principle approval from the Registrar of Companies, NCT of Delhi and Haryana, for changing the name of DEN Sports & Entertainment and DEN Soccer to Delhi Sports & Entertainment and Delhi Soccer, respectively, subject to necessary approvals and filings.