DEN, Hathway boards to meet on 17 Oct to consider fund raising proposals
MUMBAI: Multi system operators (MSOs) DEN Networks and Hathway Cable and Datacom will be holding board meetings on 17 October to consider and approve proposals for raising funds.
Incidentally, the board meetings of the two companies coincide with the board meeting of Reliance Industries Ltd (RIL) which is also slated for 17 October. The RIL meeting has been convened to consider and approve standalone and consolidated unaudited financial results of the Company for the quarter half year ended 30 September.
The clash of the board meetings of the three companies have raised speculations that a deal could be in the offing. There have been reports in the media that RIL has held exploratory talks with both Hathway and DEN for a possible acquisition.
RIL’s interest in the cable TV companies stem from the fact that it wants to use the networks of these companies to further its fibre to the home (FTTH) broadband project Jio GigaFiber.
Both DEN and Hathway are looking to raise funds by issuance of equity shares through one or more methods including further public issue/ADR/GDR/qualified institutions placement/preferential issue.
The stocks of both DEN and Hathway have seen a jump following the announcement. At the time of filing this report, the DEN stock was up 15.38% at Rs 78.75 while the Hathway stock gained 6.23% to touch Rs 23.
“Pursuant to Regulation 29 of the LODR Regulations, we wish to inform you that a meeting of the board of directors of Den Networks shall be held on October 17, 2018 to consider and approve a proposal for raising of funds inter alia by issuance of equity shares through one or more methods including further public issue/ADR/GDR/quaiified institutions placement/preferential issue, subject to such regulatory and statutory approvals as may be required including approval ofthe members of the Company,” DEN informed the BSE.
The company’s trading window for dealing in the securities will be closed for all Designated Employees (including Directors) from 14 to 19 October in terms of Code of Conduct of the Company for Prevention of insider Trading, framed pursuant to the Securities & Exchange Board of India (Prohibition of insider Trading) Regulations, 2015.
“We would like to inform you that pursuant to Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, a meeting of the Board of Directors of the Company is proposed to be held on Wednesday, 17th October, 2018 to, inter alia, consider and approve proposal for raising of funds by issuance of equity shares through one or more methods including further public issue/ ADR/GDR/qualified institutional placement /preferential issue subject to such regulatory and statutory approvals as may be required (Proposed Fund Raising),” Hathway told the BSE.
It also stated that the company will consider convening an Extra-Ordinary General Meeting to obtain approval of the shareholders for the above proposal, if the same is approved by the Board.
Hathway’s trading window for dealing in the securities has been closed from 10 to 19 October.