GTPL Hathway acquires Scod18 to bolster presence in Maharashtra
MUMBAI: Multi system operator (MSO) GTPL Hathway has expanded its footprint in Maharashtra and entered the Mumbai market through the acquisition of Scod18 Networking. The Mumbai-based MSO is promoted by Ganesh Naidu, Rajan Rane, Aashish Shirke, and Johnwin Manavalan.
GTPL Hathway has acquired 16,42,000 shares in the company at Rs. 68.21/- per share having a face value of Rs. 10/- each. The consideration has been paid in cash. Scod18 Networking has an authorised share capital of Rs. 6.05 crore while the paid-up share capital is Rs. 1.64 crore.
The company’s turnover in FY19 was Rs. 30.56 crore compared to Rs 56.88 crore in FY18 and Rs 56.18 crore in FY17. Scod18 has a presence in Mumbai, Thane and Navi Mumbai.
GTPL Hathway clarified that the deal with Scod18 is not a related party transaction. It further stated that no other promoter/promoter group/group/ group companies have any interest in Scod18.
It stated that the idea behind acquiring Scod18 is to enhance its footprint in Maharashtra. The transaction has been completed pursuant to which Scod18 has become a wholly-owned subsidiary of GTPL Hathway.
In January 2016, Siti Networks (then Siti Cable) had decided to acquire 76% stake in Scod18 Networking. However, the deal didn’t go through forcing the Scod18 promoters to scout for new suitors.
It is pertinent to note that the Supreme Court had in January upheld the cancellation of Digicable and Scod18’s digital addressable system (DAS) licence by the ministry of information and broadcasting (MIB).
The SC had dismissed the appeals filed by Digicable and Scod18 Networking against the cancellation of their DAS licence by the MIB. The bench of Justice Abhay Sapre and Justice Indu Malhotra had found both Digicable and Scod18’s argument devoid of merit and upheld the MIB’s cancellation orders against the two.
GTPL Hathway is one of India’s leading digital cable TV and broadband service providers. It provides digital cable television services in 500 plus towns across India, including towns in Gujarat, West Bengal, Maharashtra, Goa, Bihar, Assam, Jharkhand, Telangana, Rajasthan, and Andhra Pradesh.
As on 30th June, the company had seeded approximately 9.7 million set top boxes (STBs) and had approximately 7.1 million paying subscribers and 340,000 broadband subscribers with a home pass of about 2.66 million.